Daily Price Action

XAGUSD: Silver’s 2021 Rally Starts With Breaking $24.80


Silver (XAGUSD) is on the verge of a massive breakout.

I’ve been writing about the bullish scenario for XAGUSD since October 13th.

Back then, I said that silver was a “buy the dip market”.

And that remains true today.

Those who bought the recent dips above $22 are in profit or at breakeven in a worst-case scenario.

But the gains from XAGUSD may get kicked into overdrive soon.

Before we get to that, I want to call your attention to the monthly chart.

I’ve recently mentioned this, but it’s important to remember that 2020 has already been a breakout year for silver.

XAGUSD silver monthly breakout
XAGUSD monthly time frame

The fact that XAGUSD broke free from this multi-year consolidation in July can’t be overstated.

That alone was a significant bullish development for the metal.

Combine the breakout above with the bullish flag pattern on the daily time frame below, and you have a recipe for much higher silver prices.

However, XAGUSD bulls need to secure a daily close above $24.80 first.

That’s the top of this bull flag pattern and it also happens to be today’s high.

As long as silver is trading below channel resistance near $24.80, there is no confirmed breakout.

If buyers do close the pair above the channel top, the first area of resistance I’ll be watching comes in at $26.

You can see how $26 has been critical since late July.

Beyond $26 we have $30 and $35.

But as I stated on December 4th, this bull flag’s measured objective could take XAGUSD to $40 or higher in 2021.

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XAGUSD silver bull flag pattern
XAGUSD daily time frame

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Justin Bennett says

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