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Silver H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Lower Lows, Bearish Hidden Divergence, Stochastic Oscillator
On the H4 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Also, we could see that the price which was moving lower has created lower lows based on the MACD indicator which is a sign of gaining momentum toward the bearish side. Currently, it looks like a correction is happening, in addition to this, we could see that the price created a bearish hidden divergence between the first high that has formed at 23.550 and the second high that has formed at 22.007 based on the MACD indicator, which we may consider as another evidence of bearish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to continue lower further after pullbacks.
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 sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
Home Trader Club Team.
