Wheaton Precious Drops 3.24% As Bearish Momentum Tests Key 85.50 Support

Wheaton Precious (WPM) declined 3.24% in the most recent session to close at 87.33, continuing a bearish trend from its recent peak of 95.23 on 2025-06-05. This comprehensive technical analysis evaluates key indicators to assess potential future price movements.
Candlestick Theory
Recent price action shows WPM developing a bearish pattern, with the latest session forming a decisive down candle closing near its low (86.57–88.16 range) after rejecting resistance near 90.29. A critical support zone emerges between 85.50–86.21, anchored by the May 30 low of 85.70 and June 24 low of 86.21. Resistance is firmly established at 90.90–91.83, aligning with the 50% Fibonacci level and the June swing highs. Failure to hold the 85.50 support may trigger further downside toward 82.00.
Moving Average Theory
The 50-day SMA (approximately 84.40), 100-day SMA (roughly 80.00), and 200-day SMA (approximately 75.00) maintain a bullish long-term sequence (50 > 100 > 200). However, the current price (87.33) has breached the 20-day dynamic support near 88.50. While trading above the 50-day SMA suggests the primary uptrend remains intact, sustained trading below the 20-day SMA indicates near-term bearish pressure. The 50-day SMA at 84.40 now serves as a critical support confluence.
MACD & KDJ Indicators
The MACD histogram is negative with the signal line above the MACD line, confirming bearish momentum. KDJ metrics show the %K line near 22 – approaching oversold territory but not yet extreme (<20). Recent price weakness has not generated a clear oversold signal in KDJ, suggesting downward momentum may persist. Neither indicator currently exhibits bullish divergence to signal reversal potential.
Bollinger Bands
Bollinger Bands (20-day SMA ≈88.50, ±2σ) show the price testing the lower band near 85.50, with the band width expanding modestly from recent contraction – indicating volatility pickup. The close near the lower band suggests continued bearish pressure, though a reversal candle holding this level could signal a tactical rebound. Band expansion alongside descending prices warns against premature contrarian positioning.
Volume-Price Relationship
Recent declines show distribution patterns, with June 27’s 3.24% drop occurring on elevated volume (2.15M shares vs. 1.73M average). Down days since June 20 have consistently featured above-average volume, confirming selling pressure. Absence of high-volume accumulation during recovery attempts suggests weak buyer conviction, reducing confidence in sustainability of any near-term bounces.
Relative Strength Index (RSI)
The 14-day RSI reads approximately 47.3, reflecting neutral conditions but leaning bearish. Despite the sharp decline from June highs, RSI remains above oversold territory (<30), lacking extreme readings that typically precede reversals. Bearish divergence was observed in early June as prices made higher highs while RSI peaked lower. Current levels allow additional downside before reaching historic oversold thresholds.
Fibonacci Retracement
Applying Fibonacci levels to the 95.23 (June 5 high) to 86.57 (June 27 low) decline reveals key retracement zones: 23.6% at 88.62, 38.2% at 89.87, 50% at 90.90, and 61.8% at 91.93. The 23.6% level (88.62) aligns precisely with the June 27 high (88.16) and acts as immediate resistance. This Fibonacci-resistance confluence reinforces the significance of the 88.60–88.80 zone for confirming any bullish reversal.
Confluence and Divergence
Confluence appears at the 85.50–86.20 support zone, where the 50-day SMA (84.40), Bollinger lower band (≈85.50), and horizontal price support converge – strengthening its technical importance. Divergence is observed between bearish momentum oscillators (MACD, RSI) and the still-bullish long-term moving average structure, creating ambiguity. Volume patterns unanimously confirm the bearish near-term bias, lacking countervailing accumulation signals.