The Roadmap For Silver

Silver broke out from a five-decade-old pattern in November, signaling that a powerful bull market is underway, and that is still true despite the recent correction.

While we wait for more details to come in about the newly announced two week ceasefire with Iran and the financial markets’ reaction to it, I wanted to share a concise but useful update on the roadmap silver is following in the course of its secular bull market, which is still in its very early stages (learn more). By keeping this roadmap in mind, you will be better equipped to understand and stay optimistic during corrections like the one that occurred over the past couple of months.

As I regularly point out, back in November, silver broke out of a massive cup and handle pattern that had been forming since the 1960s. Based on the sheer size of that pattern, it projects silver reaching several hundred dollars per ounce, with a minimum target range of $300 to $500 during this bull market.

The cup and handle pattern was completed when silver finally surpassed the $50 ceiling, also known as a resistance level, which marked the peaks of the 1970s and 2000s silver bull markets and previously led to sharp declines (learn more). By breaking above that level in November, silver entered a new, extremely bullish phase.

I also want to point out that silver’s former $50 ceiling is now its new floor, or support level. As long as silver remains above it, which it has despite the recent correction, the bull market remains intact. That is one of the many reasons I was not concerned at any point during the correction.

Now I want to zoom in on silver’s weekly chart over the past few years to show why it corrected over the past couple of months and why that pullback is actually healthy, normal behavior that is fully consistent with a powerful bull market.

As the chart shows, in November, silver finally broke through the $50 resistance level that had capped its progress for decades. Fueled by strong momentum after the breakout, it soared as high as $121 in late January. At that point, however, it became overheated, also known as overbought, signaling that a healthy cooling-off period was likely ahead, as I noted at the time.

One way to gauge whether an asset has become overheated is by using the Relative Strength Index, or RSI, which is plotted beneath the price chart. As the chart shows, silver reached extremely overbought levels in late 2025 and early 2026, so the subsequent pullback to relieve that condition was both expected and necessary.

The good news is that silver is no longer overbought and remains above the key $50 support level shown earlier. This means it is in a much healthier state and well set up for the bull market to continue, which, as I explained earlier, should reach at least several hundred dollars per ounce before it runs its course.

To summarize, silver’s November breakout from its five-decade-old cup and handle pattern signals that a powerful bull market is underway, but it also got a bit ahead of itself earlier this year, so a pullback was in the cards to cool off.

The encouraging news is that silver has now successfully worked off its overbought status and is still holding above the $50 level from the cup and handle pattern, which means the breakout was and still is valid despite the recent turbulence, and that silver is now set up to continue its bull market to much higher levels.

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