Forex Market Ideas

Silver Short Term Forecast And Technical Analysis

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 Hidden Divergence, ADX 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 hidden divergence between the first low formed at 21.928 and the second low formed at 26.007 based on the MACD indicator, we may consider these as evidences of bullish pressure. 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. 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 – Bullish Divergence, Downtrend Line Breakout, ADX Indicator

On the H4 chart, the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 26.658 and the second low that has formed at 26.007 based on the MACD indicator. The price then moved higher and has broken above the most recent downtrend line, we may consider these as evidences of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here as well 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. So based on all this, until the strong support zone shown in the image below (marked in green) holds my short-term view remains bullish here and I expect the price to move higher further.

 

 

 

Technical Analysis & Forecast Summary

Silver D1(Daily) Chart Analysis

  • Strong Support Zone, Bullish Hidden Divergence, ADX Indicator

Silver H4(4 Hours) Chart Analysis

  • Bullish Divergence, Downtrend Line Breakout, ADX Indicator

 

 

 

 

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.

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.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to

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And improve your trading with us.

Also, you can get one of our strategies free of charge. You will find all the details here

Download our best forex indicators here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Arvinth Akash
Home Trader Club Team.

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