Peter Smith
⬤ Silver remains locked in a narrowing consolidation pattern following its sharp spike on December 28, with price continuing to move inside a descending wedge formation. The metal briefly dipped under previous lows but quickly recovered back inside the structure. XAG recently traded near $72.85, with price compressing between sloping resistance above and a rising support trendline below as volatility tightens.
⬤ The wedge developed after the steep rally into the December 28 peak, which serves as a key reference point on the chart. Since that move, Silver has carved out a sequence of lower highs while respecting support at progressively higher levels, keeping the descending wedge intact. Despite temporarily clearing prior lows, the metal continues gyrating within this bullish-leaning structure. Price has been oscillating between roughly $70 and $74 without establishing a decisive directional break.
⬤ The technical setup suggests the wedge remains structurally valid, with Silver continuing to consolidate inside the converging boundaries. The pattern has contained multiple short-term reversals as the market trades beneath the December 28 spike but above the lower support trendline. This formation could set up a strong directional move once resolved, though no specific timing or outcome is guaranteed.
⬤ Silver's ongoing consolidation follows an extended upward movement and highlights how the market has shifted into a tighter trading range. Maintaining price action within the descending wedge keeps technical focus on whether the pattern can hold and how precious metals sentiment might respond when this consolidation phase eventually breaks. The attention on this structure reflects continued market interest in how Silver performs during periods of macro uncertainty and shifting risk appetite.
Peter Smith
