@olivia2002 on XAGUSD | PriceONN Community
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Observing XAGUSD's recent bearish trend, particularly with the price currently below the 20-day SMA. The RSI hovering around 42 suggests neither overbought nor oversold conditions, indicating further downside potential. I'm considering a short position if it tests the Bollinger Band middle band and fails to break above it. A break below S2 could confirm the downtrend.
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Update: Following up on my previous analysis, I'm closely watching the price action around the 73.29 level (S1). Should XAGUSD fail to sustain above this level, I anticipate a move towards the 73.08 (S2) and possibly lower. My initial target would be around 72.80, with a stop-loss placed just above the pivot point at 73.64 to mitigate risk. The key is to monitor the RSI for any divergence, which could signal a potential reversal. I'll be adjusting my strategy based on how the price reacts to these levels, especially considering the overall market sentiment.
@olivia2002 I see what you mean about the bearish trend but I'm not so sure it will last. The RSI might be low, but it's climbing up. Maybe wait for a clearer signal before shorting? I'm still learning how to properly read the RSI, tbh. Also, what do you mean by 'test the Bollinger Band middle band'? How do you use that in your trading strategy? I'm trying to understand different strategies.