Silver Targets $120 After Breakout as Key $80–$78.70 Support Holds
Silver has shifted into a bullish technical posture after confirming a breakout above a long-term descending trendline. The breakout is reinforced by a sequence of higher lows and a strong reaction from a well-defined demand zone, signaling a potential trend reversal rather than a short-lived momentum move. Current price structure suggests that upside continuation remains favored while key support levels remain intact.
Key Technical Structure
Trendline Breakout and Market Bias
The bullish bias is based on market structure, not short-term volatility. A confirmed descending trendline breakout, followed by higher-low formation, marks a structural shift in silver’s price action. This pattern typically signals that sellers are losing control and that demand is stepping in at higher levels.
The breakout has already been validated by price holding above the former resistance zone, turning it into structural support.
Support Zone and Risk Levels
The primary demand and buy zone is defined between $80.00 and $78.70, an area where silver previously found strong support and reacted decisively higher. This zone is the foundation of the current bullish setup.
- Key support: $80.00–$78.70
- Invalidation level: Below $76.50
A sustained move below $76.50 would invalidate the bullish thesis and suggest renewed downside pressure.
Upside Targets and Trade Management
Near-Term and Intermediate Targets
From a risk-management perspective, the strategy favors phased profit-taking rather than a single exit point.
- First target (TP1): $84.00–$85.00
At this level, partial profits are advised, and stop losses can be moved to breakeven to reduce downside exposure.
As highlighted in the analysis, once the first target is reached, capital protection becomes the priority while maintaining upside participation.
- Secondary targets: $92.00–$96.00
These levels correspond to intermediate resistance zones and continuation areas within the broader bullish structure.
Long-Term Bullish Projection
If silver continues to respect the breakout structure and holds above the $80–$78.70 demand zone, the broader measured move projects a primary upside target at $118.00–$120.00.
This zone represents the full extension of the descending trendline breakout and serves as the main long-term objective for the bullish scenario.
Why This Matters
This setup reflects a textbook example of structural breakout trading. The clarity of the demand zone, invalidation level, and upside targets provides a well-defined risk-to-reward framework. Rather than relying on momentum indicators, the analysis is anchored in price structure, making it particularly relevant for swing and position traders.
As long as silver holds above key demand, upside continuation remains the dominant scenario.
Outlook
Silver price action remains constructive while above $78.70. Holding this level keeps the path open toward higher resistance zones and, ultimately, the $120 target. A failure to maintain support would quickly weaken the bullish case, underscoring the importance of disciplined risk management.
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