Hi Traders! Silver short term forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
Silver D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, ADX Indicator
On the daily chart, the price which is moving lower has reached a key support zone formed by the 261.8%(18.293) Fibonacci expansion level of the first wave and the 61.8%(18.949) Fibonacci expansion level of the second wave. The price respected this key support zone and is currently bouncing higher from this zone. We also had a bullish divergence that has formed between the first low that has formed at 20.451 and the second low that has formed at 18.136 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this short term bullish view.
Silver H4(4 Hours) Chart Analysis – Bullish Divergence, Higher Highs, ADX Indicator
On the H4 chart, the price which was moving lower created a bullish divergence which has formed between the first low at 18.917 and the second low at 18.136 based on the MACD indicator. The price then moved higher and broke above the last high at 19.089 thus creating higher highs. Also, we should note that the price which was in a bearish trend so far creating series of lower highs, lower lows has created higher highs for the first time in a while which we may consider as sign of a possible trend change. We may consider these as evidences of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Until the key support zone (marked in blue) shown in the image below holds, my short term view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
Silver D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence, ADX Indicator
Silver H4(4 Hours) Chart Analysis
- Bullish Divergence, Higher Highs, ADX Indicator
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
