The last time I wrote about XAGUSD (silver), the metal was breaking out of a wedge pattern on the daily time frame near $18.
It was a pattern that was incredibly similar to the one that developed a few weeks before at $15.
Here’s the daily chart from my June 30th post:
Following that breakout, XAGUSD retested the top of that wedge pattern but never closed back inside of it.
That meant the $18 area was always holding as support.
Our target following that breakout was $19, which I also wrote about on June 30th.
Notice how the $19 region is the top of a multi-year descending channel.
Silver hit our $19 target on Monday.
But I don’t expect channel resistance to hold for long.
Although silver hasn’t rebounded quite as aggressively as gold following the March selloff, it has had an impressive run.
Furthermore, as I mentioned in late June, silver usually lags gold at the beginning of bull markets, but eventually outperforms.
For now, though, buyers have to clear $19.30 to confirm the breakout.
In other words, XAGUSD needs to close the day above $19.30 to expose the channel’s inception point at $21.
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