XAGUSD: Breakout or Fakeout?

Silver has recently experienced a breakout with a strong move to the upside. The monthly candle is still closing outside the highlighted trend line resistance, but the price rejected near the $30 level and closed the month near $26, creating a long upper wick that suggests strong resistance.

While this technically qualifies as a breakout, the probability of silver continuing to move up is comparatively low until the price breaks above $30 with a weekly or daily candle closing above that level.

On the other hand, if this turns out to be a fakeout, we could see a move back down towards the $22 price range, where there is significant support.

When planning your trades, always remember that higher timeframe analysis is key. Looking at the bigger picture will help you filter out the short-term noise and make better decisions.

This is definitely going to be interesting to see how this plays out so make sure you add this to your watchlist and follow to stay updated on more such ideas.