Silver stays depressed near the intraday low, implying that a bearish chart pattern has been confirmed.
The downward bias is strengthened by a pullback from the 200-HMA and bearish Momentum.
The upside barriers are bolstered by a two-day-old sliding trend line.
During Thursday’s Asian session, silver (XAG/USD) flirted with a bearish shape, specifically the head-and-shoulders, falling to $26.10, down 0.13 percent intraday.
Not only is the metal trading around the neckline of the stated bearish pattern, but it is also supported by a downward sloping Momentum line and a U-turn from 200-HMA resistance.
However, a clear negative break of the $26.00 barrier would be required before hopes of a drop to the notional target of $25.30, which is below the previous month’s low.
During the fall, June’s bottom around $25.50 might serve as an intermediate halt, with the $25.00 serving as a follow-up probe for silver bears.
A break of the 200-HMA on the upside, around $26.20, will cause a corrective pullback towards the short-term resistance line near $26.30, a break of which will force buyers to ignore the downtrend-suggesting pattern and target $26.50.
Overall, the recent recovery off a multi-day low has been justified, and sellers’ expectations have been met.
More weakness is likely in the future./n
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