Silver at critical resistance, is a great collapse next?SilverOANDA:XAGUSDwithout_worriesSilver has a long history of dramatic price spikes, each coinciding with significant global macro events: June 1980, the Hunt Brother’s squeeze sent silver parabolic before collapsing March 2011, post Global Financial Crisis (GFC) stimulus + QE mania led to another blow off top Present day, amidst chaotic politics and incomprehensible levels of debt price action is once again testing the same resistance zone around $50 This area has proven to be a multi-decade resistance. Each prior approach ended in a swift and brutal correction. Technical analysis Monthly chart: Price action has surged aggressively. 300% since the lows of 2020 to the $45-50 resistance band, mirroring the same vertical rallies of 1980 and 2011. RSI: A long term descending RSI resistance line connects the 1980 and 2011 tops. Current RSI is once again colliding with this barrier, hinting at exhaustion. Momentum: While silver is undeniably strong, history suggests the upside risk may be limited at these levels compared to the downside potential. Risk reward breakdown Upside potential: A clean breakout above $50 could open the door to a true price discovery phase possibly $60+ if silver enters a secular commodities super cycle. Downside risk: Failure here would mimic the historic collapses: 1980: -90% drawdown 2011: -70% drawdown A pullback to $25-30 would not be unusual, especially if macro liquidly tightens. Trading strategy ideas: Aggressive traders: Consider short setups or profit taking near the $50 resistance, with stops above $52-53 to manage risk. Conservative traders: Wait for confirmation, either a monthly breakout or close above $50 (bullish) or a strong rejection signal. Conclusion Silver has once again like Gold reached historic levels. The risk/reward profile favours caution here on. History shows that vertical rallies into this level tend to end poorly for late longs. Unless silver breaks and holds above $50, the probability of a deep correction remains high. Is it possible price action continues higher? Sure. Is it probable? No. Ww