Silver Market Analysis | 12.16 Technical Analysis

Silver has been recently fluctuating with signs of a rebound, but don’t rush — the true conditions for a trend reversal have not yet been met. Market opportunities are everywhere; the key is whether you can maintain your composure at critical points.

The Fed’s rate cut cycle has come to an end, and officials have been speaking cautiously lately. Market expectations for further easing have also cooled down. As a result, the dollar short-term stabilizes and rises, putting direct pressure on precious metal prices. There are no clear positive signals on industrial demand either. Currently, the rebound is mainly technical correction, not a sign of a trend shift.

From a technical perspective, silver was previously stuck around the 64.6 level, then declined sharply with increased volume. On the 4-hour chart, bearish momentum has largely played out. A rebound to around 62.5 is considered a weak correction — to put it bluntly, it’s lacking strength. The moving average system is still pressing downward, and the price remains below short- and medium-term moving averages, indicating a predominantly bearish structure. If it cannot hold above the 63 level later, the rebound space above will be limited.

**Trading Strategy**

Short positions can be taken in the 62.8–63.0 range. The first target is 62.0; if it breaks, then look for 61.5.