In today’s technical analysis, let’s turn to silver, where we can spot the first cracks in what has been a very strong uptrend.
Silver climbed to new long-term highs yesterday, but the move was quickly followed by a retracement. What makes this pullback technically interesting is its shape — a classic head and shoulders pattern, clearly marked with the orange rectangle. The red neckline has already been broken, and the first red horizontal support gave way as well. The decline only halted near the second horizontal support and the nearby black uptrend line, which together form a critical defensive zone for the buyers.
If the price holds here, traders can still treat this move as a healthy correction within an uptrend, looking for renewed buying opportunities. However, if the black uptrend line and the second support are broken, sentiment would flip, and we’d have a clear technical signal to sell, with the next target sitting on the lower red horizontal support. So the setup is quite binary: for now the buy signal remains intact, but the risk of a bearish reversal is growing.