Spot Silver: Breakout of bullish flag as continuation pattern?
Silver has a stellar year thus far, with prices sitting on a 26.1% gain year-to-date. Since June this year, there has been a relatively steady net inflows for the iShares Silver Trust, which saw an in-tandem rise in the exchange traded funds (ETF) holdings from 12,869 tonnes to the current 13,586 tonnes. Rising net inflows into the world’s largest silver ETF may potentially reflect higher traction in general.
On the technical aspect, after retracing as much as 12% from its May 2024 high, prices have been back on the rise lately. Recent price movement seem to mark an upward break of its prevailing bullish flag formation, which may potentially facilitate an extension of its upward trend. This comes after prices found a key support at the lower edge of its daily Ichimoku Cloud at the $2,855 level.
Buyers may potentially eye for a retest of its May 2024 high at the $3,244 level ahead, which has served as key resistance on two previous occasions. On the downside, the Ichimoku Cloud base may serve as crucial support to hold, in order to keep the upward trend intact.