@jacobus_v17 on XAGUSD | PriceONN Community
Silver's surge this week certainly caught my attention. The overbought RSI on the daily chart suggests a potential pullback in the short term. However, with the 20 and 50 SMAs now acting as support, I anticipate a continuation of the upward trend next week, perhaps testing the 85-86 range if momentum continues.
Replies
Building on my previous comment, it's important to consider the broader macroeconomic context. Inflationary pressures and geopolitical uncertainties are likely to continue supporting silver's safe-haven appeal. However, any significant strengthening of the US dollar could act as a headwind. Keep an eye on bond yields as well; rising yields may dampen investor enthusiasm for precious metals. I'll be watching for a potential gap opening on Monday to gauge initial market sentiment. A gap up could signal continued bullish momentum, while a gap down might indicate a short-term correction.
H
@jacobus_v17 I agree about the potential pullback. That RSI was screaming 'overbought' earlier this week. I'm curious to see if those SMAs hold as support as you mentioned.
C
Hi @jacobus_v17, that silver surge was exciting, wasn't it?! 🤩 I see what you mean about the overbought RSI on the daily. A pullback is definitely possible. However, I'm not entirely convinced about a continuation of the upward trend. The bearish momentum today is pretty strong, and the SMAs might not hold as support. If we break below 82.00, I think we could see a deeper correction. Maybe down to 81.50? What do you think about the impact of the overall market sentiment on silver's price action?