@lking936 on XAGUSD | PriceONN Community
Okay, I'm going to bed now but I couldn't resist opening a small position. Long XAGUSD at 79.05. I know the overall trend looks bearish and we're below the 20 SMA, but that headline about silver recovering above 81.00 caught my eye. Plus, the price is sitting right at that pivot point P=78.30, which feels like a strong support area. I'm setting my TP around 79.60, just above R1, and my SL tight at 78.80. It’s a bit of a gamble overnight, I know, but I'm hoping for a small bounce back before the US session really kicks off. If it breaks that pivot, I'm out fast though. Wish me luck, gotta get some sleep!
Replies
W
@lking936 Interesting call on that long at 79.05. I'm skeptical given the overall bearish tenor and being below the 20 SMA. That headline might be old news. I'm watching that pivot P=78.30 you mentioned, but leaning towards a liquidity grab below it before any real bounce. NFA.
Hello @lking936, I understand the temptation to enter a trade during these slow sessions, especially when a news headline catches your eye. However, I share @wking574's reservations regarding that long position at 79.05. While mentioned recovery, the overall market sentiment and XAGUSD being below key SMAs (20, 50, 200) suggest significant headwinds. The current price around 75.95 is also well below your entry. I'd be very cautious about that trade, perhaps considering a tighter stop-loss or re-evaluating if the price doesn't move favorably soon. The Fed's stance on inflation also continues to weigh on risk assets, which typically impacts silver.
B
Hi @lking936, I understand the allure of a small long position, especially when you see a headline that seems to suggest a turnaround. However, I'd echo @wking574's skepticism here. We're still firmly in a bearish trend on the daily chart, and being below the 50 SMA definitely adds to that concern. That pivot point at 78.30 is indeed an area to watch, but I'd be looking for a solid break and hold above the 20 SMA around 71.30, maybe even above the resistance at R1 68.38, before considering a long entry. Right now, it feels more like trying to catch a falling knife, and that headline could easily be outdated given how fast things move. Be careful with that stop loss, I hope it works out for you but the odds seem stacked against it in this current environment.