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XAGUSD: Silver to End 2020 on a High Note

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Silver (XAGUSD) has reached its first key resistance level at $26 following this week’s breakout from $24.50.

I discussed silver’s breakout potential on Tuesday, hours before it entered full-on rally mode.

But we’ve known about this bull flag pattern for months.

I first mentioned it on October 13th when I said XAGUSD was a “buy the dip market”.

Before we get to the key levels I’m watching now, I want to discuss the measured objective I wrote about recently.

I’ve seen a few comments stating that XAGUSD has formed a wedge pattern over the last few months, not a bull flag.

And in my opinion, it’s both.

The chart structure began as a bull flag in August and September and later morphed into a wedge pattern after October.

So, the bull flag’s measured objective of $40 that I mentioned on December 4th is legitimate and realistic, in my opinion.

XAGUSD silver measured objective
XAGUSD daily time frame

In fact, I wouldn’t be surprised to see silver take out its all-time high of $50 in 2021.

As for the next few weeks, the price action for XAGUSD is immaculate.

As of this writing, $26 is intact as resistance.

A daily close above that would open the door to the year-to-date high just below $30.

Above that, we have $35, followed by the measured objective of $40.

If XAGUSD does pull back from the $26 resistance area, I will keep a close eye on how it reacts to $25 as new support.

I’d expect buyers to defend that area to keep the rally effort intact.

In closing, I expect silver, along with gold, to do very well in 2021.

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XAGUSD silver breakout on the daily chart
XAGUSD daily time frame

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6 comments
Justin Bennett says

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ali says

thank you sir justin.

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MARTIN MAINA says

Thanks Alot, you touches many lives directly, do you know i resigned and retired from hustles to concentrate on trading coz of you, God bless sir

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FUNSO ISHOLA says

Great Work

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Deepak says

Thank you Justin

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Alex says

Silver and gold, metals that gives a feeling of security.

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