Silver has seen a massive rally and is now undergoing a sharp correction. Price is approaching the previous breakout area, which could act as a neckline retest for the Cup & Handle / Double Bottom structure. The next move depends on whether this zone holds or breaks.
At the current price of $53.83, silver is trading near the 0.382 Fibonacci level at $53.66.
Fibonacci levels to watch
- 0.382 Fib — $53.66: Current support zone; price is testing this level.
- 0.50 Fib — $66.64: First recovery level above current price.
- 0.618 Fib — $79.62: Major resistance.
- 0.786 Fib — $98.11: Higher resistance if the uptrend resumes.
- 0.236 Fib — $37.60: Important downside retracement level.
- 0 Fib — $11.63: The swing low used for this Fibonacci measurement.
Possible scenarios
Bullish scenario: If silver holds around $53.66 and forms a clear reversal, the previous breakout structure may remain intact. A recovery above $66.64 would be the first sign of improving momentum, followed by $79.62.
Bearish scenario: If silver breaks below $53.66 and fails to reclaim it, the next Fibonacci support is around $37.60. Your marked support zone of $34.83–$28.17 becomes important if the correction deepens. A sustained break below this zone would signal further weakness.
My view: Silver is at a crucial level. The $53.66 area needs to hold for the bullish structure to remain constructive. A breakdown could bring the $37.60 Fib level and then the $34.83–$28.17 support zone into focus. Wait for price confirmation rather than assuming the neckline will hold.
DISCLAIMER:
For educational and informational purposes only. This is my personal technical analysis, not financial or trading advice or a recommendation to buy/sell. Do your own research before trading. Markets involve substantial risk, and all levels, targets and setups are illustrative and not guaranteed. Trade with proper risk management and never rely solely on this analysis.
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