Silver Tests Historic Resistance After 45-Year Formation
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Posted 09/10/2025
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Since the late 1970s, silver has been forming one of the most significant cup and handle patterns in market history. The "cup" began with the 1980 spike to nearly US$50, driven by the Hunt brothers’ infamous cornering attempt, followed by a multi-decade decline to US$4 lows in 2001. The right rim then formed with silver's rally to US$49 in 2011 amid QE-fuelled demand, completing a 30-year U-shaped base.
The subsequent “handle” consolidated sideways from 2011 to 2020, with a brief COVID-driven dip to US$12 before tightening into a gradual uptrend. This classic bullish continuation pattern signals a potential breakout above the long-standing US$50 resistance. With a US$46 depth, traditional technical targets point to US$96+, but given the sheer scale of the setup, some analysts are eyeing US$200 or higher.
As of 9 October 2025, silver is trading at around US$49.15, testing critical resistance amid surging industrial demand from solar, EVs, and AI infrastructure. A decisive close above US$50 could trigger a multi-year rally, potentially eclipsing the 1970s bull run in today’s de-dollarising environment.
NorthstarCharts recently shared a 46-year chart of silver’s formation on X, reinforcing the long-term bullish outlook and suggesting significantly higher prices over the coming decade, regardless of short-term volatility.