Silver's technical picture shows a market in a corrective consolidation phase after the explosive rally from $55 in mid-2025 to the January 2026 peak near $120/oz. The 42% correction from the peak has brought prices back to the $69 level, which coincides with the Q4 2025 support zone and the 50% Fibonacci retracement of the 2025-2026 rally.
The gold-silver ratio has settled near 63, down from extreme levels above 90 in 2024 but well above the historical average of 40-50. This signals that silver is no longer 'cheap' relative to gold, but the ratio still suggests room for silver outperformance if the structural deficit narrative drives mean reversion.
Key support sits at $65/oz, representing the Q4 2025 consolidation zone and the 61.8% Fibonacci retracement level. A break below $65 would open the path to $55, the pre-rally base. On the upside, resistance is at $85, the March 2026 recovery high, followed by the January peak at $120.
The technical setup favors range-bound trading in the near term. The structural deficit provides a floor, while the macro headwinds from the liquidity squeeze and strong dollar cap upside. A decisive break above $85 would signal the end of the correction and a resumption of the structural bull trend.
The $65-85 range is the key battlefield for silver procurement in Q3 2026. Buy aggressively near $65 support and scale back near $85 resistance. The structural deficit supports a higher average price through 2026-2027, so use any test of $65 as a significant purchasing opportunity for forward coverage.