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 H4 chart here.
Silver H4(4 Hours) Chart Analysis – Bearish Divergence, Uptrend Line Breakout, Heikin Ashi Candles, ADX Indicator
On the H4 chart, the price created a bearish divergence between the first high that has formed at 25.195 and the second high that has formed at 25.914 based on the MACD indicator which we may consider as evidence of bearish pressure. The price then moved lower and broke below the most recent uptrend line and is holding below it, we may consider this as another evidence of bearish pressure. Also, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward-moving market conditions so it basically reflects a bearish environment. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. Also, currently there are no signs opposing this short term bearish view. So everything looks good here for the bears and we may now move down to one timeframe lower and look for evidences supporting this short term bearish view.
Silver H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, Strong Resistance Zone
On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies here as well in downward-moving market conditions so it basically reflects a bearish environment. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. 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 move lower further after pullbacks.
Technical Analysis & Forecast Summary
Silver H4(4 Hours) Chart Analysis
- Bearish Divergence, Uptrend Line Breakout, Heikin Ashi Candles, ADX Indicator
Silver H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bearish Trend Pattern, Strong Resistance 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 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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Happy Trading!
Arvinth Akash
Home Trader Club Team.
