• Silver price is correcting back after rallying during May. 
• The correction is likely to run out of steam eventually and the uptrend to resume. 
• Support at $27.51 may provide the staging post for a bullish revival. 

Silver (XAG/USD) price is correcting back after the strong rally in May became overbought and bullish traders unwound their longs. 

Despite the correction, the short-term trend for Silver remains bullish and given the old adage that “the trend is your friend,” it is expected to resume and push higher once the pull back ends. 

There are no signs yet that the correction has ended – though downside momentum is slowing – and it is possible Silver could continue falling. 

The next major support level that may act as a barrier to further losses is at the former April 26 highs at $27.51. A reversal at that level could signal the resumption of the dominant uptrend. 

A break above the May 10 high at $28.77 would indicate the formation of a higher high and suggest extension. 

Beyond that there is the possibility of a retest of the $30.00 long-term range highs.