@shantidevi on XAGUSD | PriceONN Community
Looking at the weekly chart for XAGUSD over the weekend, it's clear Friday's close was quite a shocker. That 6.67% drop is significant, and we're now sitting just above the lower Bollinger band at 67.65. The RSI is really in oversold territory at 30.5, which historically has sometimes led to a bounce, but given the momentum and the break of the 50-day SMA, I'm still wary of further downside next week, especially if we see a gap open.
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Actually, thinking more about that RSI at 30.5, it's deep into oversold territory, which usually suggests a reversal is due. However, the fact that we broke through the 20-day and 50-day SMAs so decisively on Friday is concerning. The news about silver plunging over 6% and testing lower support levels is definitely playing on my mind. I'm wondering if this is another one of those situations where the RSI stays oversold for longer than expected, especially if the dollar continues to strengthen as @ephillips875 mentioned. I really hope we don't gap down on Monday morning below the 66.59 S2 pivot point. That would be a disaster. I'm holding a small long position from around 70, so this weekend has been quite the nail-biter.
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Hi @shantidevi, I saw your post about the weekly chart. That 6.67% drop on Friday was indeed concerning. While the RSI is deep in oversold territory at 30.5, I'm hesitant to jump in on a long position just yet. The price is also sitting right at the 20-day SMA, which is currently at 68.79, and it's acting as both support and resistance. If we can't hold this level, the next significant support would be closer to 66.47, the lower Bollinger band. The fact that we broke through the 50-day SMA so easily also gives me pause. Need to see some stronger buying conviction and confirmation before considering a bounce.