Silver Technical Analysis

Yesterday, spot silver pulled back 5.57%, falling to USD $73.88 per ounce. That dip was aggressively bought, leaving a long wick on the daily candle. This is a bullish signal, suggesting buyers are not waiting for a deeper pullback and have already begun stepping in.

Silver remains roughly 8% below its all-time high. The question now is whether buying momentum continues toward new highs, or whether a further short-term pullback develops. No one can know for certain, but several combined indicators on the one-hour timeframe offer some insight.

Above, there is a simple moving average line at 200 hours, a MACD fast moving average at 12, MACD slow at 26, and MACD signal line at 9. The colour coding helps clarify the trend in question. Notice the lines remain solidly green when bullish and have not changed to red (which happens when the trend reverses). However, the smaller dips which end up recovering do change to blue to help signal that they are simply temporary retracements rather than a change of direction. A temporary retracement like this can lead to a change in trend, but so far, the candle patterns have agreed with these indicators.

From October:

For comparison, the example above shows a clear change in direction that persisted for several weeks. Note the decisive break below the 200-hour moving average, with bearish candle patterns reinforcing the shift. In that instance, both price action and indicators were aligned to the downside.

This has not been the case with the recent pullback. Yesterday’s red candle was absorbed by buyers, with price rebounding 4.22% from the daily low. Ongoing geopolitical risk and concerns around long-term currency debasement continue to underpin strength across the precious metals complex.