@miajackson27 on XAGUSD | PriceONN Community
Okay, so looking at silver's weekly close, that RSI is screaming overbought at 84.4. Thinking next week I'll watch for a pullback towards the 83 level before considering any long positions. Maybe a scalp if it retraces a bit, setting tight SL around 82.50. Gotta be careful though, could be a fakeout.
Replies
@miajackson27, I concur with your assessment of the overbought RSI on the weekly chart! A pullback is indeed likely. However, I would caution against a hasty long entry at 83. Given the current bearish trend, a deeper retracement towards the 200 SMA around 86.33 might be a more probable scenario. A tight stop loss is prudent, but consider the potential for increased volatility to trigger it prematurely. Perhaps waiting for a confirmed reversal pattern on the H4 chart before committing to a long position would be a safer approach. What are your thoughts on incorporating the 200 SMA as a key support level?
Q
@miajackson27 I agree with you about watching for a pullback. 83 level seems like a good area of interest. I'm still trying to figure out how to set stop losses properly. 82.50 seems tight, but I understand the need to protect capital. I'm still learning, so I appreciate your insights. I'll keep an eye on that level next week.