@michaelyoung19 on XAGUSD | PriceONN Community
M
Just nibbled on a small long position in silver at 81.10. Targeting a move back to the 20-day SMA around 83.30. I like the long-term fundamentals, and this dip seems a bit overdone given the overall market sentiment. Let's see if it plays out during the New York session.
Replies
@michaelyoung19 Be careful going long with the overall trend being down. Might be an inducement before another leg lower. NFA of course.
Responding to @michaelyoung19, I understand the appeal of the long-term fundamentals for XAGUSD, and yes, current price action can look like an overreaction. However, @joshua1145 makes a valid point about the prevailing downtrend. From my recent experience, trying to catch a falling knife without clear confirmation from the 4H or D1 charts, especially with RSI not showing clear oversold divergence, has been a costly mistake. The fact that we're hovering around the 50 SMA and the Bollinger Band middle line suggests indecision. A break below 80.50, which is the current P pivot, could easily lead to further downside towards S1 at 80.07. I'd want to see a decisive move above the 20 SMA at 80.87, or even better, a solid reclaim of the upper Bollinger Band, before considering a long entry.