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 – Key Resistance Zone, Bearish Divergence, Volumes Indicator
On the H4 chart, the price which is moving higher reached a key resistance zone that has formed based on the 100%(23.934) Fibonacci expansion level of the big wave and the 61.8%(24.115) Fibonacci expansion level of the small wave. Also, we have a bearish divergence that has formed between the first high formed at 22.376 and the second high formed at 24.186 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, based on the Volumes indicator we could see that the volumes are dropping, we may consider this as yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to one timeframe lower and look for evidence supporting this short-term bearish view.
Silver H1(1 Hour) Chart Analysis – Bearish Divergence, RSI Indicator
Looking at the H1 chart, we could see that the price which is moving higher has created a bearish divergence that has formed between the first high that has formed on 30th March 2023 and the second high that has formed on 3rd April 2023 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, we have this bearish divergence on the RSI indicator as well, which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears as well and until the key resistance zone (marked in red) shown in the image below holds my short term view remains bearish here. A valid breakout below the last low at 23.561 would be the validation for this short term bearish view.
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
Home Trader Club Team.
