Silver not only survived last Thursday’s sell-off, but it revealed something important. The decline was approximately 9% a Stress testThe market’s response – holding above 70 – suggests that defending 70 is more than just technical noise. May refer to the point that Control shifted from weak hands to strong hands.
A sell-off would have produced clean results Reset sites. Leveraged long trades were forced back in volume, with weak hands being eliminated in a single session. But what followed was just as important: strong hands quickly intervened, absorbing the offer and preventing a deeper collapse.
Crucially, The market refused to wait until 60. This level remains the most important value area, however buyers chose to act early, reaching the 70 level instead. This behavior reflects a change in mindset.Less patience, more urgency– As participants wait for the supply conditions to tighten and geopolitical uncertainty continues.
These structural factors are still at work. With the supply deficit continuing for the fifth year in a row, silver has a fundamental bond underneath it. This does not guarantee a rally, but it does strengthen the case that the downside has increasing support, especially after such a sharp decline.
However, The bullish story is still incomplete. Silver continues to face yield-driven pressures, as sensitivity to non-yielding assets limits gains in a rising interest rate environment. A move towards the 80 level would need yield relief, most likely through a fall in the US 10 bond yield from the current 4.3% to 4.2%. Until that happens, rallies – although possible – will likely stall below key resistance, leaving the 80 level out of reach for the time being.
Technically, at the moment, further upside is expected as long as the support at 66.70 remains stable. A break of 76.29 will resume the bounce from 60.97 towards the 38.2% retracement from 121.83 to 60.97 at 84.21. However, a break of 66.70 would likely lead to another test of 60.97, or perhaps even a brief break of the psychological 60 level, before silver forms a firm bottom.
