Silver declining ahead of another potential rebound

Silver is gaining momentum for a corrective decline following its attempt to test the 38.381 level. Quotes are showing signs of a fading bullish impulse and a potential downward reversal after hitting a local high last week. On the daily timeframe (D1), the price is currently sitting at $38.044, indicating rising pressure from sellers.

This trend in silver is confirmed by several technical indicators. The Stochastic Oscillator (%K and %D) is now located in the oversold zone (above 80), which is considered to be a classic sign of a correction. The %K line has started to decline relative to the %D signal line, reinforcing expectations of a bearish pullback. The MACD also indicates a slowdown in bullish momentum: the bar chart remains in the positive zone, but its height is shrinking, while the MACD line is beginning to converge with the signal one, confirming that the bulls are losing strength.

The moving averages support a bearish scenario as well. The EMA(20) remains above the EMA(50), but the gap between them is narrowing. A crossover between these lines could occur soon, which would serve as a strong sell signal for silver, potentially marking the end of the long-term uptrend.

However, the On-Balance Volume (OBV) requires attention, as the indicator is declining at a much slower pace than the price. Therefore, trading volumes do not fully confirm bearish momentum. The current drop in silver may represent only a temporary correction rather than a full reversal.

Overall, the technical picture suggests a corrective pullback following last week’s rise in metal’s price. The first support lies at $38.000. If this level is broken down, the next target will be $37.000. However, a rather slow decline in the OBV signals a high probability of another rebound after the correction.

The following trading strategy is now recommended:

Buying silver during the downward correction. It is better to open a position in the range of $38.000–$37.300. Take profit: $39.300. Stop loss: $37.000.

The forecast is likely to materialize between August 11 and August 18, 2025.