How much higher can silver go XAGUSD
Traders need to determine target levels for XAG/USD
Share this:
Lots of chatter over the weekend that the Silver ETF (SLV) could be the next $GME. If traders could indeed buy the ETF and squeeze out shorts, that in turn would drag the cash market and the futures market higher with it. Physical bars of silver were in strong demand over the weekend, and there were reports of some suppliers running out. We discussed the possibility of a silver short squeeze last week, and on Sunday evening at the 6:00pm Globex open, it was off to the races. But traders need to determine some target levels for XAG/USD, ask themselves…”At these levels, what is my risk if prices move higher. What is my risk if prices move lower?”
XAG/USD gapped higher on Sunday evenings reopen to 27.885 after closing on Friday at 26.991. The precious metal raced higher into a resistance zone and briefly took out the August 7th highs at 29.857. Today’s high so far is 30.082.
Tradingview, City Index
Today’s highs are just under the 161.8% Fibonacci extension of the highs from January 6th to the lows of January 17th, near 30.316. In addition, the RSI was overbought near those highs, but has pulled back into the neutral area. The January 6th highs at 27.336 act as the first level of support. 27.666 was Fridays high, which acts is the gap fill support, however the “technical” gap fill (from Friday’s close) isn’t until 26.991.
Tradingview, City Index
However, on a weekly timeframe, the chart shows that whether or not there was a short squeeze is irrelevant. Price is breaking out from a flag/pennant formation and appears to be heading higher. The target for the breakout of a flag patten is the length of the flagpole added to the breakout point of the flag (to be conservative, move the flagpole to the bottom trendline of the flag for a target). The target in this case is near 34.40.
Tradingview, City Index
Although the short squeeze appeared to be in full affect overnight and into the US open, price has since pulled back. However, now that it has broken out of the flag pattern, bulls will be looking for levels to enter on pullbacks to target 34.40. Sellers will be watching the overnight near 30.316 to push price lower.
Learn more about gold and silver trading opportunities.
Lots of chatter over the weekend that the Silver ETF (SLV) could be the next $GME. If traders could indeed buy the ETF and squeeze out shorts, that in turn would drag the cash market and the futures market higher with it. Physical bars of silver were in strong demand over the weekend, and there were reports of some suppliers running out. We discussed the possibility of a silver short squeeze last week, and on Sunday evening at the 6:00pm Globex open, it was off to the races. But traders need to determine some target levels for XAG/USD, ask themselves…”At these levels, what is my risk if prices move higher. What is my risk if prices move lower?”
XAG/USD gapped higher on Sunday evenings reopen to 27.885 after closing on Friday at 26.991. The precious metal raced higher into a resistance zone and briefly took out the August 7th highs at 29.857. Today’s high so far is 30.082.
Tradingview, FOREX.com
Today’s highs are just under the 161.8% Fibonacci extension of the highs from January 6th to the lows of January 17th, near 30.316. In addition, the RSI was overbought near those highs, but has pulled back into the neutral area. The January 6th highs at 27.336 act as the first level of support. 27.666 was Fridays high, which acts is the gap fill support, however the “technical” gap fill (from Friday’s close) isn’t until 26.991.
Tradingview, FOREX.com
However, on a weekly timeframe, the chart shows that whether or not there was a short squeeze is irrelevant. Price is breaking out from a flag/pennant formation and appears to be heading higher. The target for the breakout of a flag patten is the length of the flagpole added to the breakout point of the flag (to be conservative, move the flagpole to the bottom trendline of the flag for a target). The target in this case is near 34.40.
Tradingview, FOREX.com
Although the short squeeze appeared to be in full affect overnight and into the US open, price has since pulled back. However, now that it has broken out of the flag pattern, bulls will be looking for levels to enter on pullbacks to target 34.40. Sellers will be watching the overnight near 30.316 to push price lower.
Learn more about gold and silver trading opportunities.
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/JPY Q4 2026 Outlook: Hawkish Fed Pricing Clashes With Intervention Risk
The year-end tug-of-war is clear: hawkish Fed pricing supports USD/JPY, while intervention risk limits the upside.
Japanese Yen Forecast: USD/JPY 4% Rally Challenges Post-Intervention Downtrend 9 24 2026
USD/JPY momentum has shifted sharply higher, putting a major resistance confluence in focus as U.S. and Japanese event risk builds.
Oil Quietly Hands the Fed a Reason to Stay Hawkish
Oil prices and the U.S. dollar are both on the front foot as elevated energy costs feed Fed warnings that inflation may prove sticky.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.