Silver got rejected near April’s high of 26.00 last week, charting a bearish double top pattern in the short-term picture after an impressive two-month rally.
Selling forces may persist in the short term according to the falling momentum indicators, though with the RSI approaching its 30 oversold mark, some consolidation cannot be ruled out within the 24.83-24.45 region. This is formed by the 23.6% Fibonacci retracement of the latest upleg and the neckline of the bearish pattern.
Should the bears breach the 24.45 floor, downgrading the big picture back to neutral, the decline may stretch towards the 24.00 number and then head for the 38.2% Fibonacci level of 23.73.
Otherwise, if the price returns above the 200-period SMA, it may crawl up to meet the 20- and 50-day SMAs at 25.45. A successful penetration higher could take a breather near 25.90 before touching the 26.00 ceiling. Beyond the latter point, the price may pause around the 26.35 barrier before advancing towards the March 2022 peak of 26.93.
In short, silver is exposed to a bearish trend reversal, with traders awaiting confirmation below 24.45.
