🔥 Silver at Major Supply: Is a Drop to $62 Next?
Current Structure
Price is trading around 66.50 after a strong bounce from the 62.3-63.3 demand zone.
The move higher has run directly into a 4H supply area around 66.7-68.5.
There is also a descending trendline overhead, adding confluence to resistance.
Key Levels
Resistance
66.7-67.0 (immediate reaction zone)
67.5-68.5 (major supply)
70.0-71.1 (higher-timeframe liquidity/supply)
Support
65.0-65.5 (minor support)
62.8-63.3 (major demand)
62.3 (swing low/liquidity target)
What the Chart Suggests
The black projected path shown on the chart indicates:
A brief push/sweep into 66.8-67.0.
Rejection from supply.
Lower high formation.
Sell-off toward 63.0-62.3 demand.
This bearish scenario is reasonable because:
Price is entering supply after an impulsive rally.
Recent candles appear to have swept liquidity above prior highs.
The dominant trendline is still sloping downward.
Bullish Invalidation
Bears lose control if:
A 4H candle closes strongly above 67.0, and especially
Price accepts above 68.5 supply.
In that case, silver could target:
70.0
71.1
Trading Bias
Near-term: Slightly bearish / sell-the-rally
Preferred area for sellers: 66.7-68.0
Initial downside objective: 65.0
Main target: 63.3-62.3
Risk/reward currently favours waiting for confirmation inside the supply zone rather than chasing the recent rally higher.
My read: ~60-65% probability of a pullback from this zone before any sustained move toward 70+. The reaction around 66.7-67.0 is the key clue to watch in the next few 4H candles.
Chris
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