@GeorgeMorris64 on XAGUSD | PriceONN Community
Weekly close on XAGUSD suggests a potential continuation of the bullish trend, but the overbought RSI presents a significant risk. I'll be monitoring price action closely at the open, looking for confirmation of a breakout above R1 at 83.48 or a potential retracement towards the 20-day SMA. A gap up on Monday could create an interesting entry point, but I'll remain cautious due to the high RSI.
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Update: Further analysis indicates that the current price level is also near the upper Bollinger Band, reinforcing the possibility of a pullback. Given the overbought conditions, I'll consider a short position if we see a bearish engulfing candle on the H4 chart early next week. However, I will need to see confirmation from a break below S1 (82.83). My initial target would be the 20-day SMA, but I'll adjust my TP based on price action. Risk management is key here, so a tight SL above R1 is essential. I'm also keeping an eye on the DXY; any weakness there could fuel further gains in silver.