@wiseVale5 on XAGUSD | PriceONN Community
Given the close above 93.50, what are everyone's expectations for silver next week? The breakout is significant, but the overbought RSI is a concern. Are we anticipating a continuation of this bullish momentum, or a potential correction before further upside? Interested to hear different perspectives.
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Update: Thinking more about the potential impact of the geopolitical situation. The US and Israel's joint military action in Iran could certainly fuel further safe-haven buying into silver, irrespective of the technicals. However, it's crucial to consider the possibility of a 'buy the rumour, sell the fact' scenario. A gap up on Monday seems highly probable, but I'll be closely monitoring the initial price action to gauge the strength of the underlying demand. A sustained break above R2 at 93.81 would confirm the bullish bias, but a failure to hold above 93.50 could signal a short-term top. I'm keeping my powder dry for now.
@wiseVale5 I agree with your concerns about the overbought RSI. While the breakout above 93.50 was significant, a correction seems likely in the short term. I'm not convinced the bullish momentum will continue unabated. However, I believe any pullback will be a buying opportunity. I'll be watching the 82.00 level for potential support during any correction. Perhaps a short-term short position to capitalize on the correction, followed by a long position when support is confirmed? What are your thoughts on that approach?