Silver Pulls Back After Rejection Near $88 as Prices Test Key Support

Silver has pulled back in the short term after facing strong resistance near the $87.8–$88.5 zone. The rejection triggered a bearish shift in near-term momentum, pushing prices lower from recent highs. Despite this pullback, the broader bullish structure remains intact, suggesting the move may represent a healthy correction rather than a trend reversal.

Key Technical Developments

Resistance Rejection and Momentum Shift

On the 30-minute chart, Silver failed to sustain a breakout above the $87.8–$88.5 resistance zone. This rejection marked a change in short-term character, confirming increasing selling pressure after the breakout attempt stalled. As a result, prices retreated toward the mid-$85 range, where Silver is currently consolidating.

Market analysts tracking the move noted that the inability to hold above equal highs signals near-term weakness while still remaining within a broader bullish framework.

Trend Structure and Support Levels

Despite the pullback, an ascending trendline that has guided price action since late January remains intact. This trendline support reinforces the idea that the current move is corrective in nature.

The primary area of interest on the downside lies between $83.0 and $81.8. This zone aligns with:

• Previous demand levels
• Bullish order flow
• Structural trendline support

A pullback into this region would represent a technical retracement within the existing uptrend rather than a breakdown.

Why This Matters

Silver’s recent price action highlights a classic tug-of-war between sellers at elevated levels and buyers defending trend support. The rejection near $88 confirms that supply remains active at higher prices, while clearly defined support below suggests buyers have not exited the market.

How Silver behaves around the $83–$81.8 support zone will be critical. A strong reaction could reestablish bullish momentum, while failure to hold may lead to extended consolidation or deeper retracement.

Outlook and Price Targets

If support holds and bullish participation returns:

• Upside targets are projected near $92.0 and $96.0
• These levels align with prior highs and higher-timeframe resistance zones

If selling pressure persists, Silver may remain range-bound until a clearer directional catalyst emerges.

Analyst Perspective

Silver’s pullback appears to be a normal retracement following a strong advance. The $83–$81.8 zone offers a favorable risk-reward area for bullish setups, provided buyers step back in with confirmation. As long as structural support holds, the broader uptrend remains valid and higher prices toward the $92–$96 range remain achievable.

Source: Forex Market Makers