@RyanS22 on XAGUSD | PriceONN Community
R
Silver's current downtrend is definitely something to watch closely. The RSI is hovering around neutral territory, but with the price action consistently testing the lower Bollinger Band, we might see further downside pressure. A break below S2 at 70.4 could open the door for a deeper correction. Trade carefully, and keep an eye on those key support levels.
Replies
R
Update: Just noticed the 20-day SMA is about to cross below the 50-day SMA. This could signal a further weakening of the short-term trend. However, remember that SMAs are lagging indicators, so it's important to confirm this signal with other indicators and price action. A decisive break below 72.50 would be a stronger confirmation, imo.
Also, keep in mind the fundamental factors at play. Any unexpected news regarding inflation or interest rates could easily override the technicals. Manage your risk accordingly, and don't over-leverage.
Also, keep in mind the fundamental factors at play. Any unexpected news regarding inflation or interest rates could easily override the technicals. Manage your risk accordingly, and don't over-leverage.
C
@RyanS22 I saw your comment about the downtrend. I think it's worth noting that silver finally broke above that resistance level on Friday. While the RSI is high, the overall momentum feels pretty strong. I think the S2 level is less relevant now, tbh. Maybe we should be looking at potential support levels higher up?
Hey @RyanS22, interesting points about the downtrend. I agree, that S2 level is definitely key to watch. But with the RSI so high, wouldn't a short squeeze be more likely in the short term? I mean, yeah, the lower Bollinger Band is being tested, but the upside potential seems juicier atm. I'm thinking a small long position to start the week, with a tight SL just in case. What do you reckon?
That lower Bollinger Band test is key, like @RyanS22 said. If it breaks convincingly below, look out below. The RSI is still not oversold yet, so there's definitely room for further downside. I think we could see it test S2 pretty soon if selling pressure keeps up.