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On October 13th, I wrote about a descending channel on silver (XAGUSD).
Due to the recent uptrend that began following the March selloff, this channel looks to be a bull flag.
In other words, a close above resistance could trigger a trend continuation.
The idea of a higher XAGUSD price is also in line with what’s happening on the monthly time frame.
Notice how silver recently broke out of a six-year consolidation period.
I can’t overstate how significant that is.
The July 2020 breakout alone is incredibly bullish for XAGUSD over the next few years.
I should also point out that the $26 area will be a hurdle for buyers.
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The pair broke below that level in September.
That means silver bulls need to get back above channel resistance, but they also need to clear the $26 region.
Do that, and we could see another explosive rally from silver.
A daily close above $26 would open the door to the $30 resistance area, followed by $35.
If we treat this as a bull flag pattern, the measured objective comes in near $40.
Disclosure: I hold multiple silver positions from the $18 area per my June 30th post.