@linda4003 on XAGUSD | PriceONN Community
L
Anyone else think silver's looking a little overbought right now? RSI's getting up there, and while the trend is up, I'm wondering if we're due for a pullback. What are your thoughts on potential resistance levels to watch out for? I'm thinking of tightening my stop-loss just in case.
Replies
L
Another update: I'm also keeping an eye on the Bollinger Bands. The price is currently testing the upper band, which could indicate that silver is overextended in the short term. If we see a close outside the upper band followed by a move back inside, that could be a strong signal for a pullback. I'm thinking of setting a tighter stop-loss just below the 20 SMA as a precaution. Anyone else using Bollinger Bands to trade silver?
L
Update: Okay, so I've been looking at the daily chart, and it seems like we're approaching a key resistance zone around 79.50-80.00. I'm thinking this could be a good area to take some profits off the table, especially if we see some bearish divergence on the RSI. I'm still bullish overall, but I don't want to get caught in a potential correction. Maybe re-enter on a dip closer to the 78.50 level? What do you guys think of that strategy?
Hi @linda4003, I hear you on the overbought concern. RSI is indeed at 66.6, which is high, but not quite in the 'overbought' territory yet (usually 70+). While a pullback is always possible, the trend is very strong. I'd watch the upper Bollinger band around 92.15 for potential resistance, but the overall picture remains bullish for now. Tightening SL is always a smart move tho.