Saad Ullah
Silver is stabilizing after a sharp and volatile correction, with price action bouncing from a key structural support zone near $65-$70. The recent move suggests that downside pressure may be fading, opening the door for a broader recovery as market structure begins to shift.
As noted by analyst Rashad Hajiyev, silver's latest reaction from support highlights a potential turning point following one of the most aggressive pullbacks in the current cycle.
The selloff that followed silver's surge toward the $120+ region marked a clear exhaustion phase, with price collapsing back into its long-term trend structure. This wasn't a mild retracement - it was a deep correction that tested the integrity of the broader uptrend.
Silver's bounce from the $65-$70 zone wasn't random. Price returned precisely to a rising multi-year trendline originating from 2024 - and the market responded with conviction.
The chart shows price returning precisely to a rising multi-year trendline originating from 2024. This zone, currently around $65-$70, has acted as a structural floor. The reaction from this level was sharp, with long lower wicks signaling strong demand absorption. Importantly, this aligns with broader technical observations where silver repeatedly finds support in this region during corrections, reinforcing its role as a key pivot zone.
How the $120+ Decline Reset Silver's Momentum
The decline from the highs was not just about price - it reshaped market structure. Silver broke below a steeper acceleration trendline that had guided the late-stage rally, signaling a loss of momentum. However, the longer-term ascending support remained intact. This distinction is critical.
Rather than forming a full trend reversal, the structure now resembles a deep corrective phase within a larger bullish cycle. Similar patterns have been observed before, where sharp declines act as resets before continuation moves. Price action has also begun to stabilize, with the formation of a potential higher low after the bounce. The absence of follow-through selling suggests that bearish momentum is weakening.
The break below the acceleration trendline looked alarming, but the longer-term structure never broke. That's the difference between a correction and a reversal.
Where Silver's Structure at $70 Begins to Turn
Following the rebound, silver is consolidating just below the $70 level, attempting to reclaim previously broken structure. This area is now acting as a pivot:
- Below it, the market remains in corrective mode
- Above it, structure begins to shift toward recovery
The short-term trendline that was broken during the decline is now being retested. A successful reclaim would mark a transition from lower highs to a more constructive pattern. This kind of transition often signals the early stages of a new expansion phase, especially after prolonged corrective pressure.
The Signal Traders Are Watching Right Now
The broader trend still shows a sequence of higher highs and higher lows on the macro timeframe, despite the recent disruption. What matters now is whether silver can rebuild momentum above this base.
Recent technical setups across the market suggest that consolidation phases like this often precede renewed upside, especially when support levels continue to hold. At the same time, similar analyses point to silver being in a late-stage correction, where stabilization near current levels could precede a stronger move higher.
If $65-$70 keeps holding, you're not looking at a breakdown anymore - you're looking at a launchpad.
If the $65-$70 zone continues to hold, the structure increasingly supports a recovery scenario rather than further breakdown. The recent bounce does not confirm a full reversal yet - but it clearly marks the first shift in behavior since the selloff began, with buyers stepping back in at a level that has historically defined trend continuation.
Saad Ullah
