• Silver bears lick their lips at key structures.
  • 38.2% Fibo plays the role of resistance.

silver fired in a correction on Friday with a high of $22.844 from a low of $22.3474. Bulls are correcting the weekly sell-off by the end of the month. The focus is on the Federal Reserve as the data continues to offer mixed messages. The Federal Reserve’s preferred gauge of inflation rose 0.3% month-on-month, in line with forecasts and below 0.4% in April, while the annual core rate slowed to 4.6% and the main PC the rate hit its lowest level in nearly two years.

In contrast to this week’s firmer data, there has been some profit-taking, as shown by the following:

Silver weekly chart

We are witnessing a classic rejection of the neckline of the M-formation followed by a bearish continuation of the breakout of the structure to the downside.

Silver daily chart

A bullish correction is in play to test 38.2% Fibonacci this seems like resistance so far. Bears are eyeing the prospect of a continuation of the decline for the next few days.

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