Silver Slips: A Bearish MACD Takeover

Precious Metals Plunge: Silver’s 4H Analysis

Silver’s recent price action on the 4-hour chart presents a compelling landscape for technical analysis, with key indicators suggesting notable trends and potential pivot points. Traders and investors alike scrutinize such charts to forecast future movements and identify trading opportunities. The interplay of moving averages, Bollinger Bands, and the MACD histogram on this chart provides rich ground for analysis.

   Chart Notes: 

  • Chart time-zone is UTC (+03:00)
  • Candles’ time-frame is 4h.

The technical analysis of Silver on the 4-hour chart reveals a period of volatility as indicated by the widening Bollinger Bands, followed by a consolidation phase. The Moving Average Convergence Divergence (MACD) histogram shows a bearish momentum as it trends below the baseline, with increasing red bars suggesting that the downward momentum is gaining strength. The recent crossover of the MACD line below the signal line reinforces this bearish outlook. Meanwhile, the price has recently dipped below the 50-period Exponential Moving Average (EMA), signaling potential bearish continuation. However, the lower band of the Bollinger Bands could provide a level of support, potentially leading to a bounce if the price can stabilize and the selling pressure subsides. It’s crucial to monitor if the price can hold above the lower Bollinger Band or if it will breach this level, which could indicate a stronger bearish trend. Investors should watch for any signs of a reversal, such as a bullish MACD crossover or a price move back above the EMA, to re-evaluate the bearish scenario.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.