Today’s technical analysis focuses on Silver, which experienced a dramatic move over the last few sessions. During the previous two days, silver dropped more than 20%, a very aggressive correction after the earlier rally.
However, the second half of Tuesday’s session brought the first signs of recovery. Buyers stepped in and started a rebound, and that move continued during the following session as well, extending the upward correction.
Technically, the decline stopped within a defensive corrective structure marked with red lines. From there, price pushed higher and reached a very important resistance level around $85.3, marked in blue. This level is not random. It acted as support in the second half of February, and now it is being tested from below as resistance.
The first contact with this level produced a shooting star on the hourly chart, marked in yellow. Normally, a candle like that suggests rejection and gives sellers an opportunity to take control. Despite that signal, the price continues to push higher, showing that buying pressure is still present.
From a trading perspective, the key question is whether sellers will defend this resistance again. Another clear rejection from the blue level would generate a sell signal and confirm that the bearish correction is still active. As long as price stays below this resistance, the sentiment remains negative.
On the other hand, a decisive move back above the $85.3 level would invalidate the resistance and generate a buy signal, suggesting that the rebound is turning into a stronger bullish recovery.