Last week, I discussed a bullish scenario for silver to challenge the $20.50-$21 resistance area. However, price has since retreated sharply. I still think $XAGUSD will continue towards at least $20, but we probably will see a period of consolidation first started by last week's sharp pullback. Silver (XAG/USD) Continues to Surge; $20.50-$21 Will be Key Resistance XAG/USD Daily Chart (click to enlarge) Pullback:- After breaking above $18.50, price has not been able to stay above this key resistance.- Instead price is now testing the $18 area as support.- A bullish market for silver might keep XAG/USD above $18.- But even if price pulls back further, I think support around $17.45 would still indicate a bullish market.Breakout Not Confirmed:- On the weekly chart, we can see that last week's candle is indicative of a failed bullish breakout.- This signals at least some short-term bearish outlook, or a period of consolidation.- We mentioned $17.45 as a potential support.- If there is an even deeper retracement, I think $16-$16.15 will have to the critical support for the bullish outlook. - A hold above $16 is my current criteria for a bullish scenario in silver, with the $20-$21 area still in sight. - I would therefore prepare to add exposure around $17.50, and again around $16.20 . XAG/USD Weekly Chart (click to enlarge)