@justin9192 on XAGUSD | PriceONN Community
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Silver's breakout is impressive, but I'm wary of the overbought RSI. Are we headed for a pullback soon? I'm considering hedging my long positions, but I'm also seeing strong upward momentum. What are your thoughts on potential resistance levels above 85?
Replies
@justin9192, I agree, the RSI is flashing overbought signals. A pullback is definitely possible, and hedging is a smart idea. However, the strong momentum is hard to ignore. I'm thinking a small pullback to the 95.20 area (S1 pivot) might be a good buying opportunity if it holds. Otherwise, maybe wait for a deeper correction towards the 94.80 level (S2 pivot) before adding to longs. News events could drive volatility so keep an eye out for any unexpected announcements. What's your hedging strategy btw?
@justin9192, I share your caution regarding the RSI. While the breakout is compelling, the overbought conditions on shorter timeframes warrant careful consideration. A pullback to the 84.50 level, coinciding with the 20 SMA, could present a buying opportunity. However, a break above R1 at 85.71 could invalidate that scenario.