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Silver D1(Daily) Chart Analysis – Parabolic Sar, ADX Indicator
On the daily chart, we had a strong bullish rally and it looks like a correction is happening now. Currently, there are no signs of a trend change in play yet. In addition to this based on the Parabolic Sar the dots are above the price which we may consider as evidence of bearish pressure. Also, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. We may now move down to one timeframe lower and see if we can find evidences supporting this bearish view.
Silver H4(4 Hours) Chart Analysis – Bearish Hidden Divergence, Stochastic Oscillator
Looking at the H4 chart after the strong bearish move, it looks like a correction is happening currently. We have a potential bearish hidden divergence between the first high that has formed on 15th September 2020 and the second high that has formed on 29th September 2020 based on the histogram of the MACD indicator. Also looking at the Stochastic Oscillator we could see that it has reached its extreme. We may consider these as evidences of bearish pressure. So based on all this, my view is bearish here and once this pullback completes itself I expect the price to continue lower further.
Technical Analysis & Forecast Summary
Silver D1(Daily) Chart Analysis
- Parabolic Sar, ADX Indicator
Silver H4(4 Hours) Chart Analysis
- Bearish Hidden Divergence, Stochastic Oscillator
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