In today’s technical analysis, let’s take a closer look at Silver, which seems to be forming a major reversal setup after several weeks of bearish correction. The metal ended last week with a strong rebound, and on the H4 chart, the structure looks very promising for buyers. What we can clearly identify is an inverse head and shoulders formation, marked with green rectangles — a classic bullish reversal pattern that often marks the transition from a downtrend to a new upward phase.
This setup is developing around a key horizontal support zone, which dates back to the end of September and beginning of October — a level that previously acted as strong resistance and now serves as a foundation for buyers. Each time the price reached this zone, demand kicked in, preventing deeper declines. That repeated defense of the same area adds credibility to the pattern. However, it’s important to note that the formation isn’t active yet — it still needs confirmation. The neckline, marked with orange color, acts as the trigger level.
A daily close above the orange neckline would activate the formation and confirm a buy signal, potentially opening the way for a larger bullish leg in the upcoming sessions. On the other hand, if Silver fails to break above the neckline and reverses downward, the setup may remain neutral or even invalidated. For now, sentiment is cautiously optimistic, but confirmation through a breakout is essential for a proper long-term signal.