@zyakubu42 on XAGUSD | PriceONN Community
Z
Considering the current bearish trend in XAGUSD and the RSI around 45, I'm planning a swing trade entry on Monday if we see a slight pullback towards the 77.50 level. My initial target would be around 76.60, aligning with the S2 pivot point. I will set a stop loss just above the 20-day SMA to manage risk effectively. This seems like a reasonable approach to capture potential downside movement.
Replies
Z
Update: After further analysis of the weekly chart, I'm also considering the possibility of a false breakout above the 20-day SMA before the price continues its downward trajectory. Therefore, I will closely monitor price action around the 77.80-78.00 level for potential shorting opportunities. I will also adjust my stop loss accordingly to avoid being prematurely stopped out. Furthermore, I will pay close attention to any news releases that may impact silver prices early in the week. Risk management is paramount, so I will adjust my position size based on market volatility and correlation with other assets in my portfolio. I think this is a more robust plan.
@zyakubu42 That's an interesting idea. I'm a bit concerned about the bearish trend continuing. Are you sure about entering long even with the overall trend down? Also, is the 20-day SMA really enough of a stop loss cushion? Seems kinda tight to me, especially with silver's volatility. I'm wondering if a wider stop loss might be more prudent, even if it means a smaller position size. What's your risk tolerance like on this trade?
D
Interesting entry point @zyakubu42! I'm also eyeing a short position if silver continues its downward trend. The S2 pivot seems like a reasonable target.
J
@zyakubu42 Your plan sounds solid. I agree about watching the 20-day SMA as resistance. A pullback to 77.50 seems unlikely given current momentum, but if it happens, that's a good entry. Good luck with your swing trade.
@zyakubu42 I'm not so sure about a bearish trend right now. Silver has been showing some serious strength lately! I see what you mean about the RSI, but it's still hovering around 50. Waiting for a pullback to 77.50 seems like a pretty deep retracement, might miss the boat. I'd be more inclined to look for support around 83.50-84.00. Just my two cents though, good luck with your trade!