Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of April 7th 2023 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find a short explanation of all the trade setups we had this week and how it has currently developed now.

Trading Ideas (Blog Posts)

Silver – My idea here was “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”.

Current Scenario – The price action didn’t follow my analysis here, the validation for the bearish view which is a valid breakout below the last low at 23.561 didn’t happen. Alternatively, the price moved higher and we get a valid breakout above the key resistance zone and the price is currently holding above it. This is a contradictory sign opposing the bearish view. My current view on Silver is neutral.

AUDUSD – My idea here was “On the H1 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, and higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening. Also, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout, these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones (marked in blue) shown in the image below hold my short-term view remains bullish here and I expect the price to move higher further”.

Current Scenario – In AUDUSD I mentioned that until the two strong support zones hold my short-term view remains bullish and I expect the price to move higher further. My plan still remains the same here.

NASDAQ – My idea here was “On the H1 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that formed at 13195.99 and the second high that formed at 13235.24 based on the MACD indicator. The price then moved lower and broke below the last low at 13043.74 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidence of bearish pressure. Generally, after a bearish convergence, we may look for corrections and then a further continuation lower. Currently, it looks like a correction is happening. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads a value over 25 which we may consider as yet another evidence of bearish pressure. Until the key resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – In NASDAQ after the bearish convergence currently it looks like a pullback is happening. My plan didn’t change here, that is until the key resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here and I expect the price to move lower further after pullbacks.

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