Saad Ullah
⬤ Silver is hovering near critical support as traders watch for signs of a reversal. The metal appears to be building an inverse head and shoulders formation that could drive prices back toward $70 in the coming weeks. Activity may slow during the upcoming Chinese holidays, creating a quiet period before the next significant move takes shape.
⬤ After pulling back from recent peaks, silver has settled into a consolidation zone between roughly $70 and $90. The chart reveals a textbook inverse head and shoulders pattern, where the price has established multiple lows that form a base before attempting to break higher. This type of silver consolidation near support has appeared before during corrective phases, often preceding renewed upward momentum.
⬤ If the pattern holds and the neckline is reclaimed, silver may transition from sideways trading into a more sustained uptrend. Historical silver breakout structures have shown similar behavior, where consolidation gives way to directional expansion once key resistance is overcome.
⬤ The $70 level now acts as a pivotal zone. A successful retest and hold above this area would validate the pattern and potentially unlock a path toward higher targets in the months ahead. Previous instances of silver resistance tests have often marked turning points, with price action shifting from choppy ranges to clearer trends.
⬤ The coming weeks will be crucial for determining whether silver can break out of its current range and resume a broader rally. Traders are watching the neckline area closely, as a confirmed breakout would signal a shift from consolidation to a fresh bullish phase in the XAG market.
Saad Ullah
