Hi Traders! Silver forecast update and follow up is here. On November 17th I shared this “Silver Technical Analysis And Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
My Idea
On the H4 chart after the big move to the downside currently, it looks like a correction is happening in the form of a range. The price which is moving inside this range has currently bounced from the top of it and is moving lower towards the bottom. Also, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as evidence of bearish pressure. If we get a valid breakout below the bottom of this range, we may then consider it as a validation for the bearish view and may expect the price to continue lower further in the short term.
Silver H4(4 Hours) Chart Current Scenario
On the H4 chart, the validation for the bearish view which is a valid breakout below the bottom of the range happened as I expected it to. The price broke below the bottom of the range and is currently moving lower and has provided us a nice move so far as you can see in the screenshot below.
On the M15 chart after the breakout of the bottom of the H4 range, we got a pullback in the form of double wave to the upside and then the price moved lower and broke below the most recent uptrend line. We may consider this as a fact provided by the market supporting the bearish view and there were no opposite signs. The price then retested the breakout and moved lower as I expected providing a nice move to the downside.
So traders when it comes to trading, there are various important factors that we need to pay attention to, just because we have a good setup doesn’t mean that we can enter the trade randomly and it will pay us huge profits. First of all, we need to validate the entry and we should have a perfect entry plan to get into the trade which is a key factor when it comes to trading. This Silver forecast is a perfect example of this scenario.
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
