XAGUSD Remains a “Buy the Dip” Market

by Justin Bennett  · 

October 13, 2020

by Justin Bennett  · 

October 13, 2020

by Justin Bennett  · 

October 13, 2020

Silver, or XAGUSD, had a heck of a run between March and August.

The metal went from a low of $11.62 on March 18th to $29.84 on August 7th.

However, since peaking in early August, XAGUSD has experienced a significant pullback.

Or has it?

Although the retracement on the daily time frame (second chart below) looks aggressive, it isn’t.

The 50% retracement of that March to August rally lies at $20.70, which hasn’t been tested yet.

Of course, there’s still time for that.

But the bigger story, in my opinion, is the way silver is holding above multi-year levels and also carving a massive bull flag pattern.

First, let’s look at the multi-year levels for XAGUSD.

XAGUSD silver monthly time frame
XAGUSD monthly time frame

Notice how silver broke out earlier this year and is holding above the $20 to $21 area, which is also the 50% retracement of the year-to-date range.

Looking at the daily time frame, it appears XAGUSD is carving a huge bull flag pattern off of the August high.

If the recent low in August holds, the measured objective is near $39.

The bottom line is that there may be more consolidation ahead for silver, but the long term outlook remains bullish.

XAGUSD silver daily bull flag pattern
XAGUSD daily time frame

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  1. This analysis is kind of reassuring and helpful to enable proper focus. Silver and Gold seem to be responding equally to global events. Do you see gold also acting the same way as you captured above for silvers?
    Thanks for always sharing and supporting.

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