12.30 Silver European Session Trend Analysis

Silver previously faced resistance after a rally, failing to form an effective top structure, showing a sharp peak reversal pattern. Subsequently, bearish momentum was released in full force, and the price entered a stair-step decline channel, continuously forming large bearish candles.

After probing the low of 70.5, buying support was established, leading to a V-shaped rebound. However, this rebound did not break through the key resistance nor form a reversal pattern, and overall remains a technical correction within the ongoing downtrend.

The 75.5 level serves as the upper boundary of the previous consolidation platform and is also an important defensive zone for the bears. If the rebound cannot stabilize above this level, the market is likely to revert to a downward trend.

Although there is short-term support below, from the overall structure and momentum indicators (BoS), the selling pressure in the resistance zone above is significantly stronger than the buying support.

Therefore, the current rebound should be viewed as a technical retracement of the short-term moving averages. Without clear signals of volume-driven upward movement or structural reversal, silver remains in a correction phase after its previous large rally.

Trading suggestion: If the price rebounds to the 75-75.5 area and shows signs of resistance, consider a light short position, with initial targets at 72 and 71; if it breaks downward, further targets could be 70 and 69.