Usman Salis
⬤ Silver (XAG) broke out above major resistance, completing a large cup-and-handle pattern on the 4-hour chart. The metal climbed sharply past the $54 zone and reached $56.40 early Friday, marking one of its strongest recent advances. The technical setup spans several weeks, with the cup forming through late October and early November before the handle developed over recent days.
⬤ The decisive move above the neckline confirms a momentum shift and lines up with broader strength in commodities. Gold's big run earlier in 2025 has sparked expectations that silver might follow a similar trajectory, particularly as traders eye the metal's relative undervaluation. The large green candle marking the breakout shows strong buying conviction as money flows into metals amid supportive macro conditions.
⬤ This breakout matters because it reflects expanding strength across precious metals just as risk hedging, inflation worries, and momentum-driven buying remain in play. Completed patterns typically draw more participation from trend followers, which can boost liquidity and sentiment. If silver holds above its former resistance zone, the metals complex could enter a more coordinated rally heading into year-end.
Usman Salis
