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Silver Has another Bearish Leg in it

Silver rallied in June from 18.64 until the 21.57 high in July. then price fell sharply to 20.58, and essentially engulfed the previous 2 weeks of consolidation.

During the 7/17 session, we saw silver rally to the 21.25, which was a resistance area in late June. Now, there could be another leg of bearish correction ahead of us.


(silver 4H chart, 7/18)

The 4H RSI tagged 30 and held below 60, which is a clue that bearish momentum is building.

If we get another bearish swing here, consider support in the 19.75-20.10 area. This contains 61.8% retracement and 50% retracement. It also contains a previous pivot at 19.89. 

If price fails to break below 20.58, and then jumps up above 21.25, the bearish correction outlook should be shelved. The mode would remain neutral to bullish and the market has a chance to continue the bullish trend since June.