Silver surged to $68.38 on the 5-hour chart but ran straight into a double top near $70, with momentum indicators diverging from price. Traders are now watching $68.81 as the Fibonacci level that separates another push toward $70 from a pullback toward $66.14.
The metal is trading at $68.38 on the 5-hour chart, pushing into a resistance zone that keeps rejecting the rally. Silver remains well above its longer-term trend, but the trend shows several warning signs.
A double top clouds the breakout attempt
An active double top at $70.08 signals bullish exhaustion, and the price action around it backs that reading. The MACD histogram is showing lower highs even as silver keeps printing new highs, a classic divergence between price and momentum. Price has also been rejected at the upper Bollinger Band at $70.57, a level where rallies have historically faded.
The $68.81 line in the sand
The $68.81 level marks the 61.8% Fibonacci retracement of the last major move, and it is now the key battleground. If silver holds above it and breaks higher, bulls could attack $70 again; a failure opens the door to a pullback toward $66.14, where the SuperTrend and 50-SMA converge.
Volume is stacked between $68.00 and $69.00, and a break of that shelf could accelerate selling. Between $66.35 and $69.50 sits a no-trade zone of mid-range chop with no edge.
Trend still intact despite the warning signs
Silver trades 11.4% above its 200-SMA, which sits at $61.34. It also remains supported by the SuperTrend at $66.14 and the Ichimoku Cloud floor at $67.51.
That leaves this looking like a possible bull trap: if price cannot clear $68.81 convincingly or gets rejected near $70.10 again, a quick drop toward $66.14–$66.35 could follow before dip buyers step back in. The uptrend remains strong, but shorting into it requires tight stop discipline.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
