@jthompson414 on XAGUSD | PriceONN Community
Considering the current technical setup, I am contemplating a short position in XAGUSD. The price is below all major moving averages (20, 50, and 200 SMAs), suggesting a sustained downtrend. Moreover, the RSI is approaching oversold territory, indicating potential for a short-term bounce, which I would view as an opportunity to add to the position.
My initial target would be the S2 pivot point around 75.46, with a stop-loss placed above the 20-day SMA near 76.38 to manage risk. This strategy assumes continued dollar strength and risk-off sentiment in the broader market. Naturally, this is not a recommendation, but simply my current thinking. I will watch for confirmation before entering the trade.
My initial target would be the S2 pivot point around 75.46, with a stop-loss placed above the 20-day SMA near 76.38 to manage risk. This strategy assumes continued dollar strength and risk-off sentiment in the broader market. Naturally, this is not a recommendation, but simply my current thinking. I will watch for confirmation before entering the trade.
Replies
@jthompson414, while I see what you mean about the moving averages, I'm hesitant to jump into a short position just yet. The RSI being near overbought doesn't guarantee a bounce downwards, it could just mean we consolidate at this level before continuing upwards. Also, silver has a tendency to ignore technicals when sentiment shifts. Consider that the fundamentals are still pointing towards safe haven demand, so shorting here could be risky. I'd wait for a more convincing bearish signal before committing, perhaps a break below a key support level.
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@jthompson414 That's an interesting perspective on a short position. I'm always a bit hesitant to go against a bullish trend, even if the RSI is high. Are you looking at any other indicators to confirm your idea? I'm worried about a potential fakeout. What's your stop loss strategy?