The Silver market is at a massive crossroads. After hitting an all-time high of $121 in January 2026, the "Warsh Shock" correction has left traders divided. Current price action shows a sophisticated battle between HTF demand and MTF bearish compression.
📉 The Bearish Case: Premium Rejections
Many analysts, including Selena_FX_Trader and Paradise_Noir, highlight that the short-term structure remains under pressure.
Supply Zones: Heavy resistance is sitting between $77.60 – $78.50.
The Pattern: A descending triangle/wedge is forming. While often bullish, a break below the $72.00 support could trigger a "liquidity flush" down to $69.00 or even lower.
Macro Pressure: Better-than-expected US jobs data and shifting Fed rate cut expectations are keeping the USD stable, weighing on precious metals.
🚀 The Bullish Case: The "Structural Scarcity" Surge
Despite the dip, the long-term fundamentals for 2026 are explosive.
Inventory Crisis: Silver inventories in London and Shanghai are at 10-year lows.
Targets: Analysts like NEXTIn_Financials and Amelia007 are eyeing a recovery toward $81.00, with long-term "moon" targets at $140 and $185.
Technical Rebound: Price is currently hugging a major 4H Demand Zone ($72.67 – $73.56). If this holds, we are looking at a classic "Sweep then Expand" scenario.
🛠 Trading Plan & Key Levels
Level Type Price Zone Action/Significance
Critical Resistance $78.50 - $81.00 Must break & flip to support for bullish continuation.
Buy Entry Zone $72.00 - $74.00 High-interest demand area; watch for bullish CHoCH.
Major Support $70.00 The "Line in the Sand" for bulls.
2026 Targets $90, $99, $121+ Based on Fibonacci extensions and scarcity narrative.
⚠️ Risk Tip: Don't chase mid-range moves. Silver is highly volatile in 2026 due to AI industrial demand and geopolitical shifts. Wait for a liquidity sweep of the equal lows before looking for long confirmations.
