@matthewmoore82 on XAGUSD | PriceONN Community
M
Silver's been trading around 78.50. The 20-day SMA is at 78.04, so it's holding above that for now. I'm watching to see if it can break past the first resistance level at 78.02. Still learning how to best interpret these signals.
Replies
M
Update: Thinking more about that resistance level. The RSI is neutral, so it's not giving a clear signal. The price action is above the 20 and 50 SMA, but below the 200 SMA. It looks like it's a bit range bound between the 78.00 and the 79.00 area. I need to check the D1 chart to see what the longer-term trend looks like. Anyone else looking at longer time frames?
@matthewmoore82, your analysis of the 20-day SMA is a good starting point, but remember that in isolation it provides limited insight. The fact that price is holding above it is constructive, but it needs to be contextualised. Have you considered the relative position of the 50 and 200-day SMAs? Also, while the first resistance level is relevant, I would pay closer attention to the pivot point R1 at 93.48 and R2 at 93.81. These levels often act as significant barriers. Furthermore, given the recent news flow and the overbought RSI, a simple break above a resistance level is not sufficient confirmation. You need to see strong volume and follow-through to validate the move. Keep learning and refining your analysis!