Alex Dudov
⬤ Silver has formed a bearish engulfing candle right at the $91 resistance area, signaling short-term seller defense after the recent upward move. This price action reflects profit-taking and increased supply at a known resistance zone. On the daily timeframe, Silver has retraced from multi-week highs and is now consolidating sideways beneath the $91 level, showing that short-term sellers remain active near overhead supply areas.
⬤ Despite the bearish engulfing candle at resistance, the broader trend structure for Silver remains technically bullish. Price continues trading above the 21-day, 50-day, and 200-day exponential moving averages, which remain in an upward configuration, indicating trend integrity stays intact. The recent pullback followed a sharp advance from lower levels, and the current sideways consolidation looks more like corrective behavior than a breakdown of the bullish trend. The cluster of moving averages near current price levels also shows that buyers are defending trend support while sellers cap gains near resistance.
⬤ Since late January's sharp reversal from new highs, Silver has shifted into a range-bound state where neither bulls nor bears have gathered enough momentum to force a decisive breakout. Bulls are defending dynamic support provided by rising moving averages while sellers actively defend the horizontal resistance zone near the $90-$92 area. This has produced a period of range compression, with recent daily candles showing more sideways movement than directional thrust, suggesting the market is digesting recent gains.
⬤ The significance of current price action in Silver lies in its balance between trend structure and short-term corrective pressure. The bearish engulfing formation at resistance highlights that profit-taking and supply remain key factors near overhead levels, but the fact that price holds above major moving averages suggests this pattern is corrective rather than trend-ending. How Silver resolves its current range - whether by reclaiming resistance or breaking below dynamic support - will define the next phase of metal price action. Silver Price Tests Key 75-76 Support Zone as Breakout Builds provide additional context on recent price movements, while Silver Price Momentum Pauses After Multi-Year Surge examines the broader trend picture.
Alex Dudov
