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 daily chart here.
Silver D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, Parabolic Sar
On the daily chart, the price which is moving lower has reached a key support zone formed by the 61.8%(24.796) Fibonacci expansion level of the big wave and the 61.8%(24.761) Fibonacci expansion level of the small wave. The price respected this key support zone and is currently bouncing higher from this zone. We also had a bullish divergence that has formed between the first low that has formed at 25.541 and the second low that has formed at 24.483 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
Silver H4(4 Hours) Chart Analysis – Bullish Convergence, Range, Key Support Zone
On the H4 chart, we have a bullish divergence that has formed between the first low that has formed at 24.749 and the second low that has formed at 24.483 based on the MACD indicator. Then the price moved higher and broke above the high at 25.465 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a flat correction is happening in the form of a range. Until the key support zone shown in the image below holds my short term view remains bullish here. If we get a valid breakout above the top of this range we may then consider it as a validation for this short term bullish view and may expect the price to move higher further.
Technical Analysis & Forecast Summary
Silver D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence, Parabolic Sar
Silver H4(4 Hours) Chart Analysis
- Bullish Convergence, Range, Key Support 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 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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
