Silver prices may decline further if pivotal support levels are breached, but a period of consolidation is likely to occur beforehand.

In the near term, silver remains in a bearish trend, breaking the initial pivot at $28.65 (June 13 low) and putting pressure on other key supports at $28.49 and $28.25 (Fibo 38.2% retracement of $26.00/$32.51 and daily cloud base, respectively).

A sustained break below $28.65/49 would generate a bearish signal, completing a failure swing pattern on the daily chart and breaching pivotal Fibonacci support. This would be confirmed by a drop below the base of the thick daily Ichimoku cloud.

Such a move would pave the way for a deeper decline, targeting $27.54 (Fibo 76.4%) and $26.98 (100DMA) as subsequent levels.

The technical outlook on the daily chart is weakening, with the 10/20/55DMA’s in a bearish setup and the 14-day momentum in negative territory. However, the deeply oversold stochastic indicator suggests that bears may face resistance at the key support zone.

A period of consolidation or a limited correction is likely before any further decline, with the daily cloud top at $29.74, reinforced by the daily Tenkan-sen, capping any upticks and maintaining bearish momentum.

Caution is advised if prices lift above the cloud top and the psychological $30 barrier, which would temporarily sideline the bearish outlook.

Res: 29.06; 29.26; 29.74; 30.00
Sup: 28.49; 28.25; 28.00; 27.54