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 evidence 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 Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the H4 chart here.
- 1 Silver H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Double Wave Correction, Uptrend Line Breakout, RSI Indicator
- 2 Silver H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, ADX Indicator, Two Strong Resistance Zones
- 3 Technical Analysis & Forecast Summary
- 4 Trading Tips
Silver H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Double Wave Correction, Uptrend Line Breakout, RSI Indicator
On the H4 chart, we could see that the price which was 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. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction has happened in the form of double wave to the upside and the price which was moving higher, reached a strong resistance zone, respected it and bounced lower from this zone. The price then moved lower further and broke below the most recent uptrend line, we also have this uptrend line breakout on the RSI indicator as well. We may consider these as facts provided by the market supporting the bearish view and also there we no signs opposing this bearish view at the moment. So everything looks good here for the bears and we may now move down to lower timeframe and see if we can find evidences supporting this short term bearish view.
Silver H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, ADX Indicator, Two Strong Resistance Zones
On the H1 chart, 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 price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. 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, we had two strong support zones that has formed and the price which was moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in red) shown in the image below hold 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 Trend Pattern, Double Wave Correction, Uptrend Line Breakout, RSI Indicator
Silver H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bearish Trend Pattern, ADX Indicator, Two Strong Resistance Zones
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.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
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Happy Trading!
Arvinth Akash
Home Trader Club Team.
