Hi Traders! Silver short-term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on Silver in order to find possible trading opportunities. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
Silver D1(Daily) Chart Analysis – Strong Support Zone, Bullish Divergence, RSI Indicator
On the daily chart, the price which was moving higher broke above a strong resistance zone, after the breakout this strong resistance zone is acting as a strong support zone for us. Currently the price which is moving lower, reached this strong support zone respected it and bounced higher from this zone. Also, we could see that the price which was moving lower has created a bullish divergence between the first low formed at 21.919 and the second low formed at 21.928 based on the MACD indicator, we may consider these as evidences of bullish pressure. In addition to this, we have this bullish divergence on the RSI indicator as well, which we may consider yet another sign of bullish pressure. So everything looks good here for the bulls and 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 – Higher Highs, ADX Indicator, Strong Support Zone
On the H4 chart, we could see that the price which is moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. 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. Also we have a strong support zone that has formed and the price which is moving lower reached this zone, respected it again and is moving higher from this zone. In addition to this, currently there are no signs opposing this short term bullish view. So everything looks good here for the bulls and until the strong support zone (marked in green) shown in the image below holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
Silver D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Divergence, RSI Indicator
Silver H4(4 Hours) Chart Analysis
- Higher Highs, ADX Indicator, Strong Support Zone
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
Home Trader Club Team.
