Commodity Watch: Silver Breaks Bull Flag, Brent Crude in Fourth Week of Gains

Spot Silver: breaking the flag climb as a continuation pattern?

Silver has had an excellent year so far, with prices riding on a 26.1% year-to-date gain. Since June this year, there has been a relatively steady net inflow for the iShares Silver Trust, which has seen a tandem increase in exchange-traded fund (ETF) holdings from 12,869 tonnes to the current 13,586 tonnes. The rise in net inflows into the world’s largest silver ETF may reflect greater traction overall.

Technically, after retreating as much as 12% from the May 2024 high, prices have recently returned to the upside. The recent price action seems to mark an upward break of the prevailing rising flag formation, which could facilitate the extension of its uptrend. This comes after prices found key support at the lower edge of the Ichimoku Cloud at the $2,855 level.

Buyers could expect a retest of the May 2024 high at $3,244, which served as key resistance on two previous occasions. On the downside, the Ichimoku Cloud base can serve as crucial support to hold to keep the uptrend intact.