XAGUSD - Forming Bullish Pattern Cup & Handle - Ready to Fly

XAGUSD

- What this Cup & Handle Pattern & How It Should Be Traded.

Silver (XAGUSD has created a clear 2‑hour Cup & Handle / rounding‑bottom structure, a classic bullish continuation pattern where price first forms a rounded “U” base (cup) and then a smaller consolidation on the right side (handle).​

The neckline around 54.50 is the key decision zone – repeated rejections there show supply, and a strong close above it usually signals that buyers have finally absorbed that supply and are ready for the next leg up.​

The depth of the larger cup projected from the neckline gives a measured move, which aligns with upside objectives roughly around 61.50 (Target 1) and 64.00 (Target 2) on this chart.​
Cup & Handle works best when traders combine the pattern with strict risk management – risking only 1–2% of account per trade so that multiple small losses do not damage capital.​

Execution Section – Exact Plan (For Education Only)

Bias: Bullish, but only above the breakout level

Entry
Trade long only above 54.50. A 2H candle close above 54.50 with a solid body is the breakout confirmation; wicks alone are not enough.​

Stop‑loss
Partial / active SL: 50.75 – if price closes below this handle support, treat it as handle failure and either book loss or reduce size aggressively.​

Positional SL (pattern invalidation): 48.50 – a close below the second‑cup low invalidates the entire structure; exit fully without averaging down.​

Targets

Target 1: 61.50 – derived from measured‑move logic of the cup; good zone to book partial profits and trail stop to at least entry.​

Target 2: 64.00 – extended objective if momentum sustains; manage with trailing stop below higher swing lows to lock in open profits.​

Risk Rules for Anyone Following

Risk a fixed 1–2% of account per trade and calculate position size from distance between entry and chosen stop (partial or positional).​

If price closes back below 50.75 after breakout, treat it as early warning; if it closes below 48.50, the idea is over – no “hoping,” only disciplined exit.​