In today’s technical analysis, let’s take a closer look at Silver, which is emerging as a standout performer in the commodity space. While Gold has been stealing headlines with its spectacular multi-week rally, Silver has quietly been building momentum — and in the past two days, it has actually outperformed gold on a relative basis.
The key technical structure here is a classic ascending triangle pattern, clearly defined with purple lines on the chart. This pattern, typically considered bullish, had been forming steadily over recent weeks, with Silver making a series of higher lows while repeatedly testing a horizontal resistance zone.
Yesterday’s breakout above this horizontal resistance is a pivotal technical event. The move triggered a strong buy signal, confirming the bullish intent and shifting market sentiment decisively in favor of buyers. The breakout not only validates the ascending triangle but also sets the stage for a potential continuation toward higher price levels.
Now, this previously stubborn resistance line turns into an important support zone. As long as the price remains above the upper boundary of the triangle, the breakout remains valid, and the bullish scenario is in play.
However, traders should stay alert. A reversal back below the breakout level would be a serious red flag — it would invalidate the pattern and could serve as a signal to go short, especially if accompanied by rising volume. That said, the odds currently favor the bulls, with the breakout supported by broader precious metals strength and technical alignment.