After going on a blistering run in the second half of 2025, an equally impressive start of the year, and a volatile correction exacerbated by the Middle East conflict, silver has finally taken a breather in April.

However, its latest price action points to a potential bullish continuation.

Silver monthly chart (Source: TradingView)

After a December close above $70, despite repeated tests, that level has held, establishing a strong support. Meanwhile, the highest month close was in February at $93.75 – the level that needs to be overcome to solidify the next leg higher. However, nearly halfway through the month, May shows a bullish impulse – the price has failed to reach a previous month's low and instead turned around to clear the previous month's high. As long as it doesn't close inside the previous month's range or break support, the structure remains bullish.

Silver weekly chart (Source: TradingView)

Meanwhile, the weekly chart shows caution. Price action formed a rising lower trendline, but a lower low from the last week of March is still in play. To flip bullish, the price would have to take out the stops from early March, around $90, and close above that level, making a new swing high. Only after a higher high and a subsequent higher low are in play, the next healthy leg up becomes a probability.

Silver daily chart (Source: TradingView)

A daily chart further illustrates the situation, showing the last 3 months of price action within a range of $66 to $91. After going through a bullish and a bearish fakeout, the price mainly hung below the middle of the range before a May breakout. Although a daily timeframe already shows a higher low and a higher high, as per Dow Theory, an upper timeframe is more important.

Fundamentals To Keep In Mind

Silver remains in a production deficit. Despite fading demand, the Silver Institute notes that a 2% decline is not enough to stave off a sixth consecutive year of deficits. The 2026 projection is a shortage of around 46.3 million ounces.

Regardless of J.P. Morgan's expectation for the more widespread adoption of silver-free technology, the sector seems to be moving in the opposite direction.

Per Electrek, China's startup Greater Bay Technology has produced the first A-sample all-solid-state batteries. These batteries offer 260-500 Wh/kg energy density, fast charging, and superior safety with no thermal runaway.

The exact silver requirement remains unknown, but current leading solutions – like Samsung's SDI require about 1kg (32 oz) of silver per 100 kWh pack, showing the potential requirement of the metal necessary for the successful energy transition.

Price Watch: iShares Silver Trust (NYSE:SLV) is up 18.63% year-to-date.

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