FX.co ★ Death-X-PK | XAG/USD, SILVER

XAGUSD On Friday, silver broke out of an inverted head and shoulders pattern above $79.50, and on Monday, it kept rising. On Monday, the 20-day moving average at $85.53 and a lower swing high at $86.32 both rebounded. Earlier Friday, the 50-day average was regained at $82.20. During Mondays surge, silver hit a 12-day high and a new breakout high of $88.03. To further validate the breakout of the head and shoulders bullish reversal pattern, a daily close above $86.32 is required. At support close to the top of a long-term rising trend channel, the bullish head and shoulders pattern developed. Early in December, a bullish channel breakout occurred, setting a record high of $121.67. Three weeks ago, there was a negative correction that brought the price down to $64.06. The bull trend might be prepared to continue after important resistance has been satisfactorily tested as support. Along with a 78.6% Fibonacci retracement level at $61.84, the 20-week average also supported the channels indication that a strong upper swing low bottom had been produced. Last Tuesday saw a pullback and a higher swing low at $71.98 after the initial leg up off the bottom set a lower swing high at $86.32. Todays breakout above the lower swing high indicated a second leg up. Price symmetry between the two legs up, with a target of $94.24, which is in line with the $92.87 50% retracement level. A target zone of $92.87–$94.24 is indicated collectively. A possible pivot level is found after the price change between the two swings matches. The pricing area merits attention because it is supported by another signal.