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.
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.