The new week begins with a compelling technical landscape on silver, offering traders a clear framework for decision-making. The precious metal is currently trading within the structure of a classic head and shoulders pattern, with the formation clearly marked by yellow rectangles on the chart.
As trading resumed after the weekend, silver immediately retested the neckline of this formation, drawn in orange, and bulls managed to hold the line. The price bounced off this crucial support, avoiding a bearish breakdown for now. This bounce keeps the neckline intact and negates a sell signal—at least temporarily.
As long as silver remains above both the orange neckline and the long-term blue uptrend line, the outlook remains positive. The technical picture supports a continuation of the bullish trend, and this setup can still be viewed as a buying opportunity. However, if silver breaks decisively below both the neckline and the blue dynamic support, it would trigger a strong long-term sell signal. In such a scenario, the first downside target would be the nearby blue horizontal support, but a deeper correction could follow if the selling pressure intensifies.
This week could prove decisive. Whether silver holds above these supports or breaks through them will set the tone for its next major move.