Weekly Summary And Review August 6th 2021

Hi Traders! Weekly summary and review August 6th, 2021 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find the short explanation of all the trade setups we had in this week and how it has currently developed now.

Trading Ideas (Blog Posts)

Silver – My idea here was “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”.

Current Scenario – On the H4 chart, the price action followed my analysis exactly as I expected it to. The validation for the short term bullish view which is a valid breakout above the top of the range happened as I expected it to. The price then moved higher further and provided a nice move to the upside until it was blocked by a bearish divergence.
You can see this move clearly on the M15 chart below.

CADJPY – My idea here was “On the H1 chart, the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also we had two strong support zones and the price which was moving lower has broken below these zones and holding below them. Currently these two strong support zones are acting as two strong resistance zones for us. Until both these resistance zones hold my short term view remains bearish here and I expect the price to move lower further”.
Current Scenario – Based on the above-mentioned analysis my short term view was bearish here and I was expecting the price to move lower further until the two strong resistance zones hold. The price is currently holding in the second resistance zone, until this zone holds my short term view still remains bearish here.