Silver: New ATH, Sharp Pullback, and What Comes Next

[m_c_jacob]

Last week, something traders had been waiting for finally happened — Silver reached a new all-time high, touching 51.30 before a strong 3,000-pip selloff followed.
However, looking closely at the chart, we can see that this decline stopped precisely at the confluence of horizontal support and the ascending channel’s lower boundary — a technical level that often attracts renewed buying interest.

In my Friday’s analysis, I mentioned that although Silver looked very strong, traders should watch the ATH zone and the channel’s upper resistance for potential pullbacks. Indeed, XAGUSD reacted exactly from that area and corrected lower.

Now, things get very interesting:
1. Strong demand near $50 – Despite the initial drop on Friday, Silver built a solid floor just under the 50 level, suggesting that buyers remain in control and the recent ATH might just be a prelude to new highs.
2. Holding above the median line – The price is hovering around the channel’s midline without testing the lower boundary, a clear sign of underlying strength.
3. Potential pennant formation – Although not perfectly shaped, the price action since Thursday resembles a small pennant, which is typically a continuation pattern in bullish trends.

Putting these clues together, the technical picture still favors the upside, with confirmation coming if price sustains above the 50.50–50.70 zone.

If that happens, considering Silver’s recent momentum, we could easily see $55 as the next target in the coming week.

As long as $49 remains intact, my plan stays simple — buy the dips.