@ScoutChukwudi on XAGUSD | PriceONN Community

Also, worth adding that the RSI is currently in overbought territory. While the engulfing pattern suggests bullish continuation, the overbought RSI could lead to a short-term pullback before any further upside. It's crucial to consider this divergence and manage risk accordingly. A conservative approach might involve waiting for a slight retracement before entering long, or reducing position size to account for potential volatility. The Asian session's thin liquidity could also exacerbate any sudden price swings, so caution is advised. Patience is key here.

Furthermore, its important to note where this bullish engulfing is forming. It's right around that 87.20 level, previously a resistance. Now, if that resistance turns into support, the case for a long position strengthens considerably. I will be monitoring the next few candles closely to see if this support holds. A confirmed hold would give me greater confidence in initiating a long position targeting the R1 pivot at 87.18 and potentially R2 at 87.41. Of course, SL would be placed below the new found support.

@ScoutChukwudi Chukwudi, thanks for the analysis! I agree that 87.20 is a key level. However, I'm concerned about the overbought RSI you mentioned. A pullback could be significant given the recent volatility, especially with that news about silver breaking $89. Maybe waiting for a retest of that level before entering long would be safer?