Daily Price Action

XAGUSD: Silver Looks Ready


In my opinion, silver (XAGUSD) has been a strong buy since June.

That’s when I first mentioned the asymmetric risk to reward ratio.

Shortly after that post, XAGUSD ran from $18 to $30 in a matter of weeks.

But since topping out in August, silver has been quiet.

However, I’ve maintained the idea that XAGUSD is heading higher in 2021, which is why I wrote that it was a “buy the dip” market on October 13, 2020.

So far, so good.

Since last year, we’ve also seen XAGUSD break free from a consolidation pattern I’ve had on my chart.

XAGUSD silver bull flag
XAGUSD daily time frame

That said, you can see that silver has another resistance level to get past near $27.60.

It’s no coincidence that $27.60 is near today’s high so far.

If silver bulls can get above that, there isn’t much to prevent a run at $30.

But as I’ve stated for months, I see no reason why silver can’t rally in 2021 toward not just $30, but also $35, followed by $40.

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XAGUSD daily time frame

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Justin Bennett says

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Akhanamhe Emmanuel says

Great explanation, from experience and valid trader/analytics

Deepak says

Thank you for analysis

Juliet ekeh says

Your analysis is clear and gainful

Karisa Kimera says

Thank you Mr. Justin

Masoud402 says

Thanks for your analysis. Is it reverse head and shoulders?

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