Wheaton Precious Metals Drops 3.16% As Bearish Signals Dominate Technical Charts

Wheaton Precious Metals (WPM) declined 3.16% in its most recent session, closing at $97.51 after trading between $95.78 and $97.8499 on elevated volume of 3.4 million shares. This pullback follows a recent peak at $103.81 on August 8, 2025, establishing the current technical context for analysis.
Candlestick Theory
Recent candlestick patterns show significant bearish signals. The August 8 session formed a Shooting Star with a long upper wick ($103.81 high vs. $100.69 close), indicating rejection at the $104 resistance level. This was confirmed by the subsequent Bearish Engulfing pattern on August 11, where the red candle fully consumed the prior green candle's body. Key support now resides at $95.78 (August 11 low), aligning with the late-July consolidation zone near $92. Resistance is firmly established at $100 (psychological barrier) and the $103.81 swing high.
Moving Average Theory
The 50-day MA ($92.50) remains above the 100-day MA ($88.20) and 200-day MA ($80.85), confirming the long-term uptrend. However, the price has retreated from its $103.81 peak toward the 50-day MA. The 50-day MA provided support during the July pullback, and its proximity to the current price ($97.51) may offer dynamic support. A sustained break below this level could trigger accelerated selling toward the 100-day MA.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bearish crossover, with the histogram turning negative as momentum wanes. Meanwhile, the KDJ oscillator (9,3,3) reflects overbought recovery, with the %K line (55) crossing below the %D line from above 80 levels in early August. This confluence suggests waning upside momentum and potential near-term consolidation. No divergence is observed, as both oscillators align with the recent corrective price action.
Bollinger Bands
Bollinger Bands (20-day, 2σ) highlight expanding volatility, with the bandwidth increasing 18% since late July. The price has retreated from the upper band ($102) toward the middle band ($93.60). A contraction in volatility preceded the August breakout, and current expansion suggests directional conviction in the pullback. The lower band ($85.20) remains distant, but a breakdown below $95 may accelerate the move toward this support.
Volume-Price Relationship
Volume surged 29% to 3.4 million shares during the August 11 decline, confirming bearish conviction. This contrasts with the preceding rally days (e.g., August 4: +4.09% on 1.55M shares), where volume failed to exceed its 30-day average. The divergence between elevated volume on down days and subdued volume on up days suggests distribution near the $104 resistance. Sustainability of the uptrend requires volume expansion on rebounds.
Relative Strength Index (RSI)
The 14-day RSI (58) has retreated from overbought territory (78 on August 8) but remains above neutral. While not yet oversold, the rapid descent from overbought levels signals deteriorating momentum. Traders should note the RSI’s tendency to oscillate between 40–80 in strong uptrends, making sub-40 readings rare but high-conviction oversold signals when they occur. Current levels suggest further downside potential before reaching historic support zones.
Fibonacci Retracement
Using the swing low of $70.90 (April 4, 2025) and high of $103.81 (August 8, 2025), key retracement levels are $99.16 (23.6%), $94.93 (38.2%), and $91.86 (50%). The recent low of $95.78 aligns precisely with the 38.2% retracement, indicating technical significance. Confluence with the 50-day MA ($92.50) and volume-supported reversal patterns near $92–$95 would suggest a high-probability reversal zone. A breakdown below $94.93 may expose the 50% level ($91.86).
Concluding Synthesis
Multiple indicators converge to signal a technical correction after WPM’s sharp rally. Bearish candlestick patterns at resistance, volume-confirmed selling, and bearish MACD/KDJ crossovers align with the test of the 38.2% Fibonacci level and 50-day MA support. The absence of bullish divergences and elevated volume on down days suggest near-term caution. Traders should monitor the $94.93–$95.78 support band for potential reversals, while a decisive break below $94.93 may extend the correction toward $92.50 (50-day MA) and $91.86 (50% Fib). Resistance remains formidable at $100 and $103.81.