Silver ready for the next stage of the rally? This technical pattern indicates upside potential up to $9

After being trapped within a narrow trading band for several weeks, silver appears to be preparing for another potential breakout. After a sharp rally earlier this year from $37 to $54, prices consolidated within a wide range between $46 and $54.This prolonged consolidation phase is now attracting renewed attention from market participants, especially as global risk sentiment shifts and technical structures begin to take shape.

According to Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, the recent price action has evolved into a classic cup-and-handle structure, a technical pattern that is often closely watched by traders for breakout signals.Sheth notes that this structure emerged when “every dip found support at the 50% retracement near 46 and every rally stalled around 54.”

The technical setup, he explains, is now approaching a critical moment. “The chart shows that the bulls have come back strongly,” notes Sheth, highlighting that the hold formation is almost complete.

In particular, Sheth points out the upside potential based on the height of the pattern: “The height of the pattern suggests that silver has room to add around eight to nine dollars from the breakout point, opening the way to levels of $63-64/ounce.”

Prices are currently testing the upper end of the established range. A sustained close above the $54 level would confirm another breakout from this pattern, according to him.

Although prices have not yet broken through decisively, the broader trend remains intact.

According to Sheth’s analysis, the formation of higher highs and higher lows continues to indicate underlying strength. “Higher highs and higher lows indicate steady buying pressure in any correction. As long as prices remain above the $46 support zone, the structure remains strong and dips are likely to be absorbed quickly,” he said.

Sheth adds even more perspective to silver’s historical behavior, noting that “silver has already shown that it favors trend moves after periods of quiescence.” This feature, combined with the current setup, suggests that the metal could be preparing for the next leg of its uptrend.

Also read: Ashish Kacholia’s portfolio shines in FY26: 3 stocks become multibaggers, 5 new picks in Q2

With prices hovering around key levels and technical indicators aligning, silver continues to be closely watched by traders and analysts alike. Whether the breakout materializes remains to be seen, but according to Sheth’s reading, conditions are beginning to resemble previous setups that have led to significant changes in direction.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times).