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.
Silver H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Support Breakout, Lower Lows
On the H4 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, we had a strong support zone which the price was respecting so far has currently broken below and is holding below it, which we may consider as another evidence of bearish pressure. Also, 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. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidence supporting this short-term bearish view.
Silver H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, Two 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. Also, we had two strong support zones that have 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 hold 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
- Heikin Ashi Candles, Support Breakout, Lower Lows
Silver H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bearish Trend Pattern, Two 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.
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
