Silver is pulling back within a broader uptrend rather than reversing it, according to a new technical analysis. The setup keeps 54.65 as the line that separates a continued advance toward 78.70–84.50 from a slide toward the 50.00–45.00 zone.
A pause, not a reversal
Silver is currently undergoing a correction, and the underlying trend remains upward. The metal moved higher, paused, and the current reading suggests room for the advance to resume.
On the weekly chart, the advance has not yet run its course: a strong impulse was followed by a pullback that adjusted prices, and the final upward leg of the cycle is now taking shape. Silver is completing a small downward adjustment within that leg, which can often precede another buying phase.
The level that decides the scenario
Corrections inside an uptrend are not automatically signs of weakness; they are part of the process. The scenario only changes if price loses the level that supports it, and that level is clearly defined.
As long as silver holds above 54.65, the upside scenario stays valid. The target zone sits between 78.70 and 84.50. However, if price breaks and consolidates below 54.65, the scenario flips. That would open the way toward the 50.00–45.00 range. The main scenario is estimated to need seven days or longer to develop.
Suggested levels
The main scenario calls for buying from 60.71, with targets at 78.70 and 84.50 and a stop loss at 54.65. The alternative scenario is a conditional sell entered at 54.60, activated only if price breaks the key support, targeting 50.00 and 45.00 with a stop loss at 56.15.
The analysis is based solely on technical indicators, with no macroeconomic data or scheduled economic events factored in.
Source: Investing.com
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