FX.co ★ HiDe_N_SeEk | XAG/USD, SILVER

Last week, silver had a dramatic decline after rising to a 44-day high of $89.38. That peak was close to the previous decline's 50% retracement. Following a brief undercut of the lower uptrend line of a tiny rising channel, a pullback low of $73.86 was reached. A speedy recovery of that support zone will be finished if the session ends above the line. The lack of support near significant moving averages during the descent and a return to a broader rising channel structure, however, indicate that downward pressure is still present. A fresh breakthrough signal from the channel structure was generated by last week's surge. Silver is now in a crucial position to either strengthen further or correct with more negative price movement. A sharp drop below Monday's low of $73.86 suggests that the current trend is still in the bearish correction phase. A decline below the most recent upper swing low of $70.87 would validate that assessment. Then, lower goals would be around $65.06 and higher, close to the 200-day moving average. It is currently above both the corrective low of $61.01 in March and the previous spike low support of $64.06 from February. Silver is expected to produce a bullish hammer candlestick pattern on Monday, as it is positioned close to the lower channel boundary line's support. A positive reversal signal above Monday's high of $78.20 would also recover the 20-day and 50-day moving averages, putting silver on track to retest higher price levels even though the moving averages indicate further negative pressure. A persistent rebound above the top channel line would indicate strength and raise the possibility of testing higher levels from there. There is some clarity in the weekly chart. With a closing at the period's low, it displays a bearish shooting star candlestick pattern from the previous week. The bearish one-week pattern was triggered on Monday by a sharp drop below the low of $75.74 from the previous week. However, considering the rebound of trendline support and the developing bullish daily pattern, it was not conclusive.