EDGE Chart of the Day – Silver XAGUSD (January 17th, 2024)

The false breakout in early December 2023, is leading to silver underperforming gold, but more importantly, at risk of a further breakdown. Long term, the silver market looks to be developing a long term triangle consolidation. And the false breakout could lead to a triangle support test near the 21.25 level. A break of the 22.50 intermediate support would open the door for that to happen. The mid December 2023 to present day consolidation has an extension at 21.90 then 21.16 for the 161% “golden Fibonacci” level. A break of 21.16 would be very bearish for the precious metal.

Blake Morrow

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