Technical Picture And Key Levels
A clearer move below the rising support trend line is still needed before stronger selling positions are considered. If that break occurs, silver may fall towards $82.00 and then $80.00. Resistance is near the 200-period SMA at about $85.70. A sustained move above $85.70 could lead towards $87.00 and then $88.50, while moves below $85.70 may face selling. Looking back at the analysis from around this time in 2025, we recall the struggle silver had below the $85.70 moving average. Today, on March 13, 2026, with the metal trading closer to $78, those former price levels now represent significant overhead resistance. The market sentiment has shifted from cautious optimism to a more defined bearish pressure. Recent statistics support this cautious stance, as the Global Solar Council’s Q1 2026 report indicated a slight contraction in industrial silver demand for the first time in three years. Furthermore, data shows major silver ETFs have seen net outflows of over 15 million ounces since the start of the year, suggesting investment demand is waning. This weak fundamental backdrop reinforces the technical selling pressure we are seeing. For derivative traders, this suggests that the $80.00 and $82.00 levels, which were viewed as potential support last year, are now ceilings. Selling call options with strike prices at or above $82.00 could be a viable strategy to generate income over the coming weeks. This approach would profit from price stagnation or a further decline in the price of silver.Options Positioning And Risk Scenarios
However, we are now testing a long-term rising support trendline that has held firm for several years. A break below the current $78 level could accelerate selling, similar to the sharp drop we experienced in late 2023 after a key technical failure. Therefore, buying put options with a $75 strike could serve as a cheap hedge against a significant downturn. On the other hand, we must watch for any surprising strength, especially with the latest US inflation report due next week. A sustained break back above the old $85.70 resistance level from the 2025 analysis would invalidate the current bearish view. In that scenario, traders would quickly need to cover short positions and consider buying calls to ride a new wave of momentum toward last year’s highs. Create your live VT Markets account and start trading now.
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