Peter Smith
⬤ Silver has entered a consolidation phase after a strong upward move, with XAG/USD now trading inside an ascending wedge pattern near the $79.90 level. The metal staged a powerful rally from the low-50s before momentum began to slow at current elevated prices. While the broader trend remains upward, recent price action shows compression rather than continued acceleration—a classic pause after significant gains.
⬤ The ascending wedge structure features rising support and rising resistance, with silver repeatedly bouncing off the lower trendline while facing selling pressure at the upper boundary. This pattern developed after silver decisively broke above its prior consolidation zone, suggesting buyers remain engaged even as the market takes a breather. The wedge formation appears orderly, with no violations of trend support visible on the chart, indicating balanced conditions between buyers and sellers rather than any directional shift.
⬤ This consolidation matters because silver often reflects broader sentiment across precious metals and hard assets. When price compresses inside a rising structure at historically high levels, it typically signals sustained underlying demand while the market absorbs earlier gains. How silver behaves within this wedge could influence short-term momentum, volatility expectations, and relative performance across the precious metals complex as the next phase of price discovery unfolds.
Peter Smith
