@painter40 on XAGUSD | PriceONN Community
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Weekend chart analysis shows a potential bearish divergence on the daily. Could be a sign of exhaustion. Watch out for a gap down on Monday.
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@painter40, I agree with your bearish divergence observation. The daily RSI is screaming overbought. However, the strength of the recent move makes me cautious about calling for a major reversal just yet. A gap down on Monday is certainly possible, but I wouldn't be surprised to see buyers step in around the 83 level. I'm considering reducing my position size slightly as a precaution, but I'll wait for confirmation before closing it entirely. Maybe a tight SL is the best approach for now, just in case this rally has more steam.
@painter40 I see what you're saying about the bearish divergence on D1 for XAGUSD 🤔. It's definitely something to keep an eye on, but i'm a bit skeptical it will lead to a big gap down. The momentum is still very strong with the price well above SMAs and RSI high. i think we might see a small correction then continuation up. What makes you so sure about exhaustion? 🧐