Peter Smith
⬤ Silver is catching traders' eyes as XAG/USD develops a textbook cup and handle formation on the charts. The pattern looks familiar—a similar setup previously triggered a strong rally before pulling back for a breather. Now, with price action building another comparable structure near recent highs, technical analysts are watching closely for what comes next.
⬤ The earlier cup and handle delivered an impressive 50% surge in silver prices before hitting a correction phase. The current formation is somewhat smaller but shares the same core characteristics: a rounded bottom followed by a consolidation period. Silver is currently hovering around the mid-$80s, consolidating just beneath a clearly defined resistance zone that's been tested multiple times.
⬤ If the pattern plays out as expected, the measured move suggests roughly 25% upside from current levels. That would push silver into the $100–$103 price zone, which lines up with technical projections based on the pattern's dimensions. The smaller size of this cup and handle compared to the previous one explains why the expected gain is more modest this time around.
⬤ Here's why this matters: the setup indicates bullish momentum is still intact within the broader uptrend that's been building over recent months. A clean breakout above the handle resistance would confirm the pattern and likely fuel additional buying interest in the silver market. That said, the previous correction serves as a reminder that volatility can spike as price approaches major technical thresholds.
Peter Smith
