Silver price is trying to build a recovery from the $55 area after one of its rougher stretches of the month.
Fthegurus believes a double-bottom setup may now be developing, with the latest bounce from roughly $55 keeping that scenario alive. His chart places the next important upside area near $67, but there is one condition he wants to see first: the silver price needs to reclaim $60 by the end of next week.
That makes the current move more of a test than a confirmed reversal.
What you'll learn 👉
Macro Conditions Are Still a Problem for Silver
Silver’s latest decline did not happen in isolation.
Hotter U.S. inflation pushed Treasury yields higher and strengthened the dollar last week, both of which created pressure across precious metals. September headline CPI came in at 3.7% year over year, above expectations, and the probability of another Fed rate increase rose after the release.
The reaction in silver was particularly aggressive. Kitco reported that silver fell about 6% after the CPI data as rate expectations moved higher.
There is one potentially supportive development, though. The 10-year Treasury yield later pulled back from around 5.33% toward 5.09% despite another inflation shock from producer prices. If yields continue cooling and the dollar gives back more of its recent strength, silver could get some breathing room.
The Double Bottom Is Forming Around $55
Fthegurus’ daily chart places the first bottom in the same broad area where silver reacted earlier in the year, around $55-$56.
The latest decline has now returned price to that zone and produced another bounce, creating the early shape of a double bottom.
His first confirmation level is $60.
That makes sense technically because silver recently lost that area during the decline. Recovering it would show that buyers are doing more than simply defending support.
Above $60, the chart points toward the larger resistance zone around $67.47. From the current area near $57, a move to $67 would equal roughly 17% upside.
The analyst is still cautious, however. He noted that silver produced a similar double-bottom structure around $67 a few months ago, only for the setup to fail badly.
So $67 should not be treated as an automatic target just because $55 held once.
Read also: Silver Price Prediction: Historic Oversold Setup Could Trigger a Fresh Rally
Silver Price Prediction: What Needs to Happen Next
The structure is relatively simple.
If silver remains above $55-$56 and reclaims $60 before the end of next week, the double-bottom case becomes much more convincing. That would put $62-$64 back into focus first, followed by the larger $67 resistance zone.
A rejection below $60 would keep the recovery questionable.
And if $55 breaks decisively, the entire double-bottom idea would be invalidated, leaving silver vulnerable to another leg lower.
For now, Fthegurus has identified a potentially important turning point, but the next few sessions should decide whether this becomes a real reversal or another failed bounce from support.
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