XAGUSD: Silver to Remain Bullish Above $18

by Justin Bennett  · 

June 30, 2020

by Justin Bennett  · 

June 30, 2020

by Justin Bennett  · 

June 30, 2020

I’ve written about gold (XAUUSD) several times in recent weeks.

The consolidation between 1680 support and 1750 resistance caught my attention, given the aggressive rebound in late March and through April.

Combine the gold “snap-back” with an uptrend that started in 2016 and you have a recipe for higher prices.

Sure enough, gold closed above consolidation on June 22nd.

The market even carved a bullish pin bar last Friday, which we discussed in Sunday’s video.

Silver (XAGUSD), on the other hand, has been slower to develop.

That isn’t surprising, though, since silver has historically lagged gold at the onset of new precious metal bull markets.

But don’t take that to mean XAGUSD won’t deliver.

History has also shown us that silver tends to outperform gold during bull markets despite its delayed reaction.

In the big picture, silver is still well off its all-time high but is looking more bullish by the week.

XAGUSD weekly time frame
XAGUSD weekly time frame

And in the short-term, XAGUSD looks bullish while above the $18 handle.

Notice how Tuesday’s session broke out of a wedge pattern.

Take note too how incredibly similar the recent price action is to the breakout that materialized in early May.

That move took the silver price from $15.50 to $18.30.

I expect this next break to encounter selling pressure near $19, which is the top of the channel in the chart above.

As a side note, I continue to like the gold and silver miners, particularly the junior space.

I told DPA members about my preference for junior miners back in April.

Those investments are now up nearly 90% as of today.

Investing in miners is also a great option for those in the US to get involved in precious metals, given the inability to trade the spot market here in the states.

As always, this is my opinion only. Be sure to do your homework before making any decisions.

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XAGUSD wedge patterns on the daily time frame
XAGUSD daily time frame

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