Silver Price Chart Hints XAG/USD May Have Topped. What Next?


  • Silver price charts indicate XAG/USD may have topped, is heading for bearish correction
  • Decline in silver prices mark the start of a bigger downside move as it eyes 1-year support
  • Silver is in another compression zone, opening door to another bullish or bearish breakout


Silver prices have rallied almost five percent after the compression zone between descending resistance and support at 17.440 catapulted the precious metal to multi-month highs. However, XAG/USD’s failure to clear the September peak at 18.625 was met with disappointment and ultimately ended with the precious metal suffering its biggest one-day loss since January 28.

XAG/USD – Daily Chart

XAG/USD chart created using TradingView

Looking at a weekly chart shows that the bearish correction in the near term may precede a larger downside move in the future. Since May 2019, silver prices have traded along an uptrend, but resistance at 18.467 has managed to keep XAG/USD’s upside potential in check. However, as the area between the ceiling and uptrend narrow, silver prices may start to get pressurized until they break and reveal a directional bias.

XAG/USD – Weekly Chart

Chart showing silver prices

XAG/USD chart created using TradingView

Looking ahead, if XAG/USD breaks above 18.467 with follow-through, it could catalyze a bullish spike and propel the precious metal higher until it encounters friction at the 19.467 ceiling (labelled as “resistance”). Conversely, a downside breakout could cause silver prices to plunge until it hits 16.541 where selling pressure may be overwhelmed by buyers looking for a bottom.


— Written by Dimitri Zabelin, Jr Currency Analyst for

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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