FxWirePro- Silver Daily Outlook

Ichimoku analysis (Daily chart)

Tenken-Sen- $26.72

Kijun-Sen- $27.05

Silver is consolidating after a sell-off of more than $2. The upbeat Personal consumption expenditure has dragged the precious metal down after a minor pullback to $26.30. It has surged to 3.1% y/y vs. a forecast of 2.9%. The monthly core Personal consumption came at 0.7%, above the estimate of 0.6%. The overall trend is weak as long as resistance $30 holds. Minor jump in the US dollar index from a low of 91.525.pair. Any breach above 92.50 confirms further bullishness. The US 10- year yield has formed a minor bottom around 1.354% and gained more than 14%. XAGUS hits an intraday low of $25.98 and is currently trading around $26.05.

Technically, silver's significant support is around $25.40 (200- day EMA), violation below will drag the pair down to $25/$24.60/$24. Significant bearishness happens only if it breaks below $23.85.The near-term resistance is at $26.50, any surge past targets of $27/$28/$28.75 (May month high) high). Significant bullish continuation only if it breaks $30.

Indicator (Daily chart)

CAM indicator –Neutral

 Directional movement index – Bullish

It is good to sell on rallies around $26.45-50 with SL around $27 for TP of $23.85.