Saad Ullah
Silver's recent rally has hit the brakes, and the bears are back in the driver's seat. After a solid recovery in late October, the metal is now under pressure again, hovering just above key support.
The Technical Setup
Technical analyst Aidan points out that short-sellers have seized control following a sector-wide selloff triggered by disappointing miner earnings. The chart tells the story: a clean five-wave decline that suggests the prior uptrend is exhausted. Now bulls need to step up and defend current levels—or risk a deeper drop.
The 30-minute chart shows a textbook Elliott Wave pattern—a completed five-wave move down from the recent high near $48.70. Here's what matters most:
- Five waves complete: The decline from late October ended just above $47.40, confirming a corrective phase is underway
- Inverted head and shoulders: There's a potential IHS pattern near the support zone, but it needs a decisive bounce to stay valid
- Resistance ahead: Immediate upside barriers sit at $48.50–$48.80, with a possible B-wave rally toward $49.50–$50.00 if bulls regain control
- Critical support: The $47.40–$47.50 zone is the last line of defense before a potential slide to $46.50
What Happens Next?
Silver now faces two possible paths. If it holds $47.40, we could see a short-term bounce toward $49.50–$50.00 as part of a corrective rally. But if support breaks, the inverted head and shoulders pattern fails, and the metal could drop to $46.50 or lower.
Despite the current weakness, inflation concerns, geopolitical tension, and central bank buying still support Silver's long-term fundamentals. As the trader puts it: "We are in a bull market—everything is forgiven in a bull market, as prices always find new highs." Sharp corrections like this are normal—they reset sentiment before the next leg up. For now, all eyes are on whether bulls can defend $47 and keep the bigger trend intact.
Saad Ullah
