Daily Price Action

XAGUSD: This Chart Pattern Could Send Silver to $40


On October 13th, I wrote about a bullish chart formation for silver (XAGUSD).

The descending channel that has formed since the 2020 high at $29.80 appears to be a bullish flag pattern.

A breakout from this pattern alone could send XAGUSD much higher.

However, the pair is still consolidating.

That may seem relatively bearish, but I assure you, it isn’t.

The longer a market coils like this, the more aggressive the eventual breakout is likely to be.

Furthermore, silver’s rally earlier this year was the start of something much bigger, in my opinion.

XAGUSD silver breakout on the monthly time frame
XAGUSD monthly time frame

Viewing the monthly chart above, you can see how XAGUSD has broken out of the multi-year consolidation below the $21 level.

A bullish breakout like the one we saw between July and August isn’t likely to dissipate anytime soon.

And pullbacks like the one since August are healthy.

They help to “reset” the market for the next leg up.

If the bull flag below is any guide, that next leg up will materialize following a daily close above channel resistance.

That level comes in near $24.70 as of this writing.

A close above that would open the door to $26.00 and perhaps $29.80.

The measured objective of the pattern below is $40, but XAGUSD has a chance to move even higher over the next few years.

Want to Watch the XAGUSD Video I Just Released to Members?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in December!

XAGUSD silver bull flag on the daily chart
XAGUSD daily time frame

Leave a Comment:

Justin Bennett says

Want me to help you become a better Forex trader?

Get a Lifetime Membership to Daily Price Action today and receive access to Justin’s full price action course, dozens of forums with over 3,000 members, daily videos of trade ideas, direct access to Justin, and much more!

Save 40% on a lifetime membership in December!

Tonye Ezekiel-Hart says

Hi Justin,I want to say a big thank you for your blog and all the messages on the market. Yes, I have gained and loss because of my greed and foolishness, but I just want to appreciate all your efforts, keep it up.

    Justin Bennett says

    It’s my pleasure, Tonye. I appreciate the support.

Add Your Reply