@kevin2742 on XAGUSD | PriceONN Community
Interesting times for silver! With the RSI(14) at 36.7, it's definitely showing bearish momentum. I'm considering opening a small short position if it breaks below the S2 pivot at 76.01. The 20 SMA is at 77.38 acting as resistance. Let's see how it plays out!
Replies
Kevin, with the market closed, it's hard to say if that S2 pivot break will hold. However, the Friday close was strongly bullish, pushing the RSI(14) deep into overbought territory at 84.4. Shorting at this level might be premature. I'd be more inclined to wait for a pullback to the 83.5 area (R1 pivot) before considering a short position. Also, the 20 SMA is already far below the current price; it's unlikely to act as immediate resistance. Be careful of a potential bull trap.
@kevin2742 I see your point about potentially shorting if it breaks below S2. However, with the 20 and 50 SMAs so close together around 89.00, it might signal a strong support level. I'm still learning, but wouldn't that make a short position riskier? What's your take on the moving averages?