- Silver consolidates recent losses inside a bearish chart pattern.
- Downbeat MACD signals, sustained trading below 200-SMA also favor silver bears.
Silver holds onto the previous day’s recovery moves, following its pullback from the monthly top, near $26.10 during the initial Asian session on Friday. In doing so, the white metal stays near the support line of a short-term rising wedge bearish chart formation on the four-hour play.
Although the sellers’ favorite chart is yet to give confirmation, bearish MACD signals and the commodity’s sustained trading below 200-SMA suggest underlying weakness in the momentum.
As a result, silver bears await a decisive break below $25.85 to confirm the chart formation and eye for the yearly bottom surrounding $24.20.
However, the monthly low of around $24.80 may offer an intermediate halt during the fall.
Meanwhile, recovery moves can target $26.50 but any further upside will be probed by the upper line of the stated wedge, stretched from March 04, as well as 200-SMA, respectively around $26.65 and $26.70.
If at all silver buyers manage to conquer $26.70, an upward trajectory to $27.30 and late February top near $28.35 can’t be ruled out.
Silver four-hour chart
Trend: Pullback expected
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