Wheaton Precious Metals Slumps 4.37% In Two Days As Bearish Signals Intensify

Wheaton Precious Metals (WPM) closed at $88.70 on June 6, 2025, declining 3.16% for its second consecutive daily loss, bringing the two-day decline to 4.37%. This technical analysis evaluates the stock's current positioning through multiple frameworks.
Candlestick Theory
Recent price action shows a bearish engulfing pattern emerging at elevated levels. The June 5 candle ($90.90–$95.23) closed near its low ($91.59), forming a shooting star indicative of rejection above $95. Subsequent selling pressure on June 6 ($88.38–$91.63) established $91.60–$91.70 as a new resistance zone, while support appears near $88.40—the June 6 low—and more significantly at $85.70, aligning with the May 30 pivot low.
Moving Average Theory
The 50-day moving average (MA) converges around $80.20, while the 100-day MA resides near $77.40 and the 200-day MA at $70.80. Price currently trades above all three, confirming the primary uptrend. However, the cross of the 20-day MA ($89.25) below the 50-day MA suggests near-term consolidation pressure. Closing below the 20-day MA signals weakening momentum, with a sustained break below the 50-day MA potentially triggering deeper corrections.
MACD & KDJ Indicators
The MACD histogram has turned negative, with the signal line crossing below zero, implying bearish momentum acceleration. Concurrently, the KDJ oscillator’s %K (12.5) and %D (20.8) dive into oversold territory. While this divergence typically signals exhaustion, both metrics align in their bearish readings—suggesting downward momentum may persist before stabilization occurs.
Bollinger Bands
Bollinger Bands expanded sharply during the late-May rally but have since contracted, with June 6’s close piercing the lower band ($89.00). This violation often precedes a mean-reversion bounce toward the 20-day moving average ($89.25), but repeated closes below the lower band reinforce bearish control. Bandwidth narrowing after the prior expansion phase implies reduced directional conviction.
Volume-Price Relationship
The June 5 decline occurred on elevated volume (2.64M shares), validating the bearish reversal signaled by the shooting star candle. June 6’s selling pressure materialized on slightly reduced volume (2.48M shares), indicating moderate conviction in the breakdown. The absence of climactic volume suggests the downtrend may not yet be exhausted, requiring monitoring for volume spikes at support.
Relative Strength Index (RSI)
The 14-day RSI reading of 43.7 resides in neutral territory but has declined sharply from June 4’s near-overbought 68.2. This rapid descent into neutral territory after a failed challenge of the overbought threshold (70) underscores bearish momentum. While not oversold, the slope of the RSI deterioration suggests further downside potential before stabilization.
Fibonacci Retracement
Applying Fibonacci levels to the May 30 low ($85.70) and June 5 high ($95.23), the 38.2% retracement ($91.60) and 50% level ($90.46) failed to hold. The June 6 close below the 61.8% retracement ($89.35) confirms a deep pullback, shifting focus to the 78.6% retracement at $87.05. A breach here would expose the May 30 swing low ($85.70), representing a critical Fibonacci support confluence.
Confluence and Divergence
Confluence appears at the $85.70 support, where the swing low, 1.618 Fibonacci extension, and 200-day MA converge—strengthening this level’s technical significance. A notable divergence exists between the MACD’s bearish crossover and the KDJ’s oversold signal, reflecting conflicting momentum readings. While KDJ suggests oversold conditions, the MACD’s trajectory and volume patterns indicate bearish momentum dominance. Given the closure below key Fibonacci levels and the Bollinger Band breach, near-term bias remains downward with $87.05–$85.70 as the next probable support. Recovery above $91.60 would invalidate the immediate bearish thesis.
Probabilistically, momentum indicators and volume patterns suggest the current correction may extend toward $85.70 before attracting significant bids, though oversold oscillators warn of intermittent rebounds. The primary uptrend remains intact above the 200-day MA ($70.80), but failure to hold $85.70 may signal a larger corrective phase.