Silver Rebounds After Sharp Two-Day Collapse
Date: 04 March 2026
Overview
Silver has recently experienced a significant price drop, falling over 20% in just two days. This sharp decline followed a period of rallying prices, indicating a volatile market environment. However, signs of recovery began to emerge during the latter part of Tuesday's trading session, as buyers entered the market, leading to a rebound that continued into the following session.
Technical Analysis
The recent decline in silver prices halted within a defensive corrective structure, which is visually represented by red lines on the chart. Following this, the price began to rise, reaching a crucial resistance level at approximately $85.3, indicated by blue lines. This level is significant as it previously served as support in late February and is now being tested as resistance.
Upon the first interaction with this resistance level, a shooting star candlestick pattern appeared on the hourly chart, marked in yellow. This pattern typically suggests a potential rejection of the price at this level, providing sellers with an opportunity to regain control. Despite this bearish signal, the price has continued to rise, indicating persistent buying pressure.
Market Sentiment and Trading Perspective
The critical question for traders is whether sellers will successfully defend the $85.3 resistance level again. A clear rejection from this level would generate a sell signal, reinforcing the notion that the bearish correction remains in play. As long as the price remains below this resistance, the overall market sentiment is negative.
Conversely, if the price decisively breaks above the $85.3 level, it would invalidate the resistance and generate a buy signal, suggesting that the rebound could evolve into a more robust bullish recovery.