Technical Analysis – Silver Short Term Forecast

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Silver Forecast Update And Follow Up

Hi Traders! Silver short term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. 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!

Silver D1(Daily) Chart Analysis – Extreme Divergence, Parabolic Sar

On the daily chart, we had a strong bullish rally and the price which was moving higher has created an extreme divergence based on the moving averages of the MACD indicator and is currently moving lower. It looks like a correction is happening now and while measuring this bullish rally using the fibonacci retracement tool, we could see that the price still has room lower towards the strong support zone formed by the 38.2%(22.872) – 50%(20.724) fibonacci retracment zones. Also, there are no signs of 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. We may now move down to one timeframe lower and see if we can find evidences supporting this short term bearish view.

Technical Analysis - Silver Short Term Forecast

 

 

Silver H4(4 Hours) Chart Analysis – Uptrend Line Breakout, Parabolic Sar, ADX Indicator

On the H4 chart after the strong bearish move to the downside, we had a deeper correction in the form of an ABCD pattern and then the price which is moving lower has broken below the most recent uptrend line. Also, we had a strong support zone and the price which is moving lower has broken below this strong support zone as well and is holding below it. We may consider these as evidences of bearish pressure. Also based on the Parabolic Sar the dots are above the price here as well and there are no signs of trend change. In addition to this, 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. So until the strong resistance zone shown in the screenshot below holds my short term view remains bearish here and I expect the price to continue lower further.

(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)

Technical Analysis - Silver Short Term Forecast

 

Technical Analysis & Forecast Summary

Silver D1(Daily) Chart Analysis 

  • Extreme Divergence, Parabolic Sar

Silver H4(4 Hours) Chart Analysis 

  • Uptrend Line Breakout, Parabolic Sar, ADX Indicator

 

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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If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

 

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