The United States is celebrating Thanksgiving, meaning trading activity across financial markets will be lower than usual today (and to some extent tomorrow). Yesterday, we noted a decline in volatility in the gold market.

Against this backdrop, the silver market is drawing attention – and may not allow traders to relax. As the XAG/USD chart shows, silver has risen by more than 7% since the start of the week.

It is reasonable to assume that the holiday-induced drop in liquidity has opened the door to broader price movements. It is not impossible that we may soon see an attempt to break the all-time high (around $54.45 per ounce), which as of this morning lies roughly 1% away.

Technical Analysis of XAG/USD

Examining the XAG/USD chart, we can identify key swing points that allow us to outline an ascending channel. This week’s strong advance has pushed silver into the upper half of that channel.

The bulls’ strength is reflected in:
→ the steep slope of the orange channel, within which we see impulsive bullish candles followed by brief corrections – a classic pattern of a strong market;
→ a higher peak on the Awesome Oscillator.

Given this context, it is plausible that the median line could switch from resistance to support (as it has previously – shown by arrows), potentially helping the bulls gather the confidence needed to challenge the record high.

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