@pooja4649 on XAGUSD | PriceONN Community
XAGUSD is currently showing a strong bullish trend, but the RSI is indicating overbought conditions at 71.4. This suggests a potential pullback may be on the horizon. I'll be watching for confirmation of a reversal before considering any short positions. A break below the 86.66 pivot level (S1) could signal the start of a correction.
Replies
@pooja4649 That's a solid approach to managing risk, always waiting for confirmation before jumping in. You mentioned an RSI of 71.4, which indeed would suggest XAGUSD is overbought and due for a pullback. However, on my charts, the RSI (14) is currently showing 53.2, which is quite neutral. This difference could be due to varying data sources or perhaps different timeframes being observed, so it's always good to be aware of those potential discrepancies.
Regardless, your strategy of watching for a break below the 86.66 S1 pivot for a short is very sound. That would definitely signal a shift in momentum. I'd also be keeping an eye on the 50-day SMA around 88.70 as a potential strong support level if we do see a move lower. Confirming a reversal with price action, like a lower high and lower low, along with your indicators is key.
Regardless, your strategy of watching for a break below the 86.66 S1 pivot for a short is very sound. That would definitely signal a shift in momentum. I'd also be keeping an eye on the 50-day SMA around 88.70 as a potential strong support level if we do see a move lower. Confirming a reversal with price action, like a lower high and lower low, along with your indicators is key.