- Silver's 1-hour momentum is stalling, giving rise to the prospects of a correction.
- A Fibo analysis of the W-formation on the daily chart acts as a means to measure the downside target.
Nevertheless, the price has carved out a daily W-formation which is a bearish chart pattern.
Once the momentum starts to slow, bears will look for an entry to target the neckline of the formation or at least a 38.2% Fibonacci retracement of the bullish impulse.
If there is a confluence of both, such as is the case where things stand currently, then this offers additional conviction that the level will be tested.
The following illustrates the prospects of a downside correction from both the daily and hourly chart from where traders can monitor for a bearish environment, structure and optimal entry point.
On a break of $27.56, prior line char highs, $27.33 as the 38.2% Fibo comes into play as the next downside target.
Meanwhile, the chart's conditions are still bullish and bears will monitor for bearish structure and a shift in technical conditions.
Until then, there is still room for an upside extension.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.