Silver has broken back into a bullish structure, trading near $69.71 after reclaiming its daily equilibrium level. Analysts point to $70.69 as the next hurdle, with $72.26 and $74.98 in view if it clears, while tight physical supply and a firmer dollar shape the backdrop.
Silver clears its daily mean
Silver futures have shifted back into a bullish breakout structure, trading near $69.71 after reclaiming the Daily VC PMI mean at $68.42. The metal has staged a recovery from its recent $65.755 low and now trades above Daily Sell 1 at $69.36, challenging the prior $70.08 swing high.
According to the Daily VC PMI structure, $68.42 marks equilibrium, and holding above that level keeps the short-term bias bullish. Daily Sell 1 at $69.36 has already been penetrated, making Daily Sell 2 at $70.69 the next major objective. A sustained breakout above $70.69 could accelerate the move toward Weekly Sell 1 at $72.26, followed by Weekly Sell 2 at $74.98.
Support levels below the breakout
Corrections should initially find support around $69.36 and $68.42. Below the mean, Daily Buy 1 sits at $67.09 and Daily Buy 2 at $66.15, the higher-probability mean-reversion accumulation zones. The Weekly VC PMI mean at $67.35 reinforces that underlying support area.
The August 21 cycle window appears to have marked an important transition point, with price accelerating sharply after this timing window. Square of 9 geometry places additional importance on the $70–$71 region, which coincides with the prior $70.08 high and Daily Sell 2; confirmation above this zone would strengthen the case for an extension toward $72.26 and potentially $74.98.
Deficit and dollar strength cut both ways
Silver's broader fundamental structure remains supported by tight physical-market conditions, with the Silver Institute expecting 2026 to mark the sixth consecutive annual silver-market deficit. Investment demand remains an important source of support.
Still, macroeconomic conditions remain volatile. July PCE inflation came in slightly stronger than expected, raising expectations for a possible September Federal Reserve rate increase and supporting the dollar — a potential short-term headwind for precious metals. Silver nevertheless remains substantially higher month-over-month, pointing to continued underlying buying interest.
The preferred strategy is to buy corrections rather than aggressively short strength. As long as silver holds $68.42, the immediate targets stay at $70.69, $72.26 and $74.98; a move back below the mean would shift focus toward $67.35–$67.09 and ultimately $66.15.
Source: Investing.com
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