In today’s technical analysis, let’s take a closer look at silver, which is showing signs of a possible bullish reversal after a period of sustained weakness. The current upswing is shaping an inverse head and shoulders formation, marked with yellow color, which is a classical reversal pattern. With today’s movement, the right shoulder of this formation is being completed — a promising sign for buyers who are anticipating a shift in trend momentum.
Two aspects here are particularly important. First, we can see that silver respects head and shoulders patterns — the orange formation visible earlier on the chart was a regular head and shoulders pattern that successfully initiated the recent downtrend. Now, the inverse version of this pattern may serve as the structure that ends this bearish phase.
Second, traders must remember that the pattern is not active yet. For the inverse head and shoulders to become valid and tradable, price needs to break above the blue horizontal resistance, which serves as the neckline of this formation. Once the price closes a day above that neckline, we will have a proper buy signal, suggesting a more sustained bullish reversal ahead.
Until then, caution is advised — silver remains in a potential rather than a confirmed reversal stage. But the setup is promising, and if confirmed, it could mark the beginning of a new upward wave for the metal.