XAGUSD Multi-decade Cup & Handle?Silver pulled back on Friday and today along with most major commodities due to the USD showing strength on the incredible Nonfarm Payrolls numbers. All this short-term price action though can be viewed as nothing but noise on one pattern that has been developing since 1980 and may be close to completion.
I am using the very rare in financial analysis yearly time-frame where each candle represents 1 year. As you see since 1980, XAG has been forming a giant Cup & Handle (C&H) pattern. This formation tends to break aggressively to the upside once completed.
Two elements play a key role here:
* The 31.000 level and
* The 1Y MA50 (blue trend-line).
As you see during the formation of this pattern, Silver may have made its All Time High (and Double Top assuming 1980 was very close) at $50 but it is the $31 level that plays a critical part on a yearly basis as Silver has never closed a year above it even though it broke it four times.
At the same time during the formation of the C&H, the price never closed below the 1Y MA50 (blue trend-line) and only had marginal wick breaks (6 times), which makes this the strongest Support. What makes the case of this pattern even stronger is that last year also almost bounced off the 1Y MA50.
Investors should therefore keep an eye on the 31.000 level. If we manage to close this year (or any as a matter of fact) above it, then it will be a major first bullish sign that the Cup and Handle is close to being completed and that new ATH will follow.
** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
--------------------------------------------------------------------------------------------------------
!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!
🎉 👍 Shout-out to TradingShot's 💰 top TradingView Coin donor 💰 this week ==> pablito1986z
--------------------------------------------------------------------------------------------------------
