Silver Drops Through Key Levels, Tests $56.80 Support After Overnight Decline

• Silver took a hit during overnight trading, slipping through several technical markers that had been holding the price up. The metal broke below both the 50- and 70-period moving averages and pushed through a trend-line that had been acting as support for weeks. Market analyst TBones pointed out that the selling pressure came on fast, driving the price down toward the lower edge of its trading range.

• Right now, all eyes are on the $56.80 level. That’s the floor of the current channel Silver’s been trading in, and it’s where the next big test will happen. The chart’s showing momentum has shifted—technical indicators like RSI and MACD are both pointing downward, confirming the bearish move. But here’s the interesting part: TBones thinks this could be the last shakeout before Silver turns around and heads back up. If $56.80 holds, the next target could be around $62 at the top of the range.

“This could be the final slam before the metal begins rising toward the upper end of the range,” TBones noted in his analysis, suggesting that buyers might step in at current levels.

• Silver’s been moving inside an upward-sloping channel for a while now, bouncing between support and resistance. Breaking that trend-line overnight adds some uncertainty to the picture, but it also fits with the consolidation pattern we’ve been seeing. The $56.80 and $62 levels are the boundaries that matter most right now—they’ll tell us whether Silver’s ready to climb again or if it needs more time to find its footing.

• What happens at $56.80 will set the tone for what comes next. If support holds, we could see buyers return and push the price back toward the upper range. If it breaks, Silver might need to consolidate longer before building momentum again. Either way, this level is where the action is.

My Take: The overnight drop feels like a classic liquidity grab before a reversal. If $56.80 holds firm, this could be a prime buying opportunity for traders looking to catch the bounce back toward $62. Watch for volume and price action at support closely.

Source: TBones