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 evidences 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 Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the H4 chart here.
Silver H4(4 Hours) Chart Analysis – Key Resistance Zone, Bearish Divergence, Lower Lows, Stochastic Oscillator
On the H4 chart, the price which was moving higher has reached a key resistance zone that has formed based on the 161.8%(21.906) Fibonacci expansion level of the first wave and the 100%(21.381) Fibonacci expansion level of the second wave. The price respected this zone and bounced lower from it. Also, we have a bearish divergence that has formed between the first high that has formed on 9th November 2022 and the second high that has formed on 15th November 2022 based on the MACD indicator which we may consider as evidence of bearish pressure. The price then moved lower and broke below the last low at 21.274 thus creating lower lows which we may consider as another evidence of bearish pressure. Currently it looks like a correction is happening and, 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. In addition to this, there are no signs opposing this short term bearish view at the moment. We may now move down to lower timeframe and look for evidences supporting this short term bearish view.
Silver H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Two Strong Resistance Zones
On the H1 chart, the price has created clear waves of 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. Currently it looks like a correction is happening. Also, we had two strong support zones that has formed, the price moved lower broke 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 holds my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
Silver H4(4 Hours) Chart Analysis
- Key Resistance Zone, Bearish Divergence, Lower Lows, Stochastic Oscillator
Silver H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, 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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
