Silver Price Analysis: Bears about to take back control?

• Silver is struggling to convince on the upside and could be in the throes of a healthy correction.
• The weekly chart offers a compelling downside case from an overextended W-formation. 

The price of silver has been in the hands of the bulls for the past few months as it corrects the correction of the strong monthly rally. 

The following is a top-down analysis that illustrates where the next swing trading opportunity could arise from resistance and targeting a key confluence level on the weekly and daily charts. 

Monthly chart

The monthly chart shows a W-formation that requires a correction to at least a 38.2% Fibonacci retracement level. 

Weekly chart

The weekly chart is a showing an overextended W-formation which would be expected to lead to a downside correction towards the prior highs of the pattern that meets the 38.2% Fibonacci retracement level. 

Daily chart

The price has seen a strong rejection from resistance and could lead to a significant downside correction. 

4-hour chart

A restest of the current support and failure will raise a higher probability of a downside correction to the W-formation’s structure and the confluence of a 50% mean reversion of the latest daily bullish impulse.