Yet analyst Patrick Karim argues that traders are getting ahead of themselves. In his view, the silver price is still trapped inside a large consolidation range, and the market has not done enough to justify a lower-risk bullish entry. His focus remains on one level: $71.
The Silver Price Still Hasn’t Cleared the Level That Matters
We had a look at the silver chart, and it’s easy to see why Karim remains cautious. The silver price went through a massive rally from around $43.50 to nearly $120 before collapsing to roughly $54.50. Since that decline, silver has spent months moving sideways instead of establishing a clear trend.
Karim describes this phase as a corrective box that keeps expanding. His chart marks $71 as the key line in the sand. Until the silver price can push above that level, he believes the market remains locked inside a broad consolidation pattern.
At $63.92, silver is still more than $7 below that resistance. That’s why Karim doesn’t view the recovery as confirmation that the next major uptrend has already started. The importance of $71 comes down to confirmation.
A breakout above that level would move the silver price out of the consolidation zone that has controlled trading for months. It would also place the next resistance levels into view at $76.50, $84, and $92.
Read Also: Here’s Why Gold and Silver Prices Are Dipping Right Now
Physical Silver Demand Remains An Interesting Backdrop
The fundamentals behind the silver market are creating some unusual conditions. China exported a record 162 million ounces of silver last year while importing only about 7.6 million ounces on an adjusted basis.
Price differences between markets remain wide. At the end of August, silver traded at $66.44 in Western markets compared with $75.16 in Shanghai, leaving a premium of $8.72 per ounce.
India has also tightened the market. Import duties increased from 6% to 15% in May, and imports dropped from 534.3 tonnes a year earlier to just 46.8 tonnes during the same month, a decline of more than 91%.
Silver Price Prediction: Recovery First, Breakout Later?
The silver price has definitely improved since the lows near $54.50, but the chart still leaves room for debate. Bulls can point to the recovery from support and the ongoing strength in physical demand. Bears can point to the fact that silver remains trapped below the level that would confirm a breakout.
