@ngozi94 on XAGUSD | PriceONN Community
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This whole price action around 69-70 feels like a trap. I saw that Santacruz Silver Mining news earlier, and it made me wonder if the whole precious metals sector is just getting hammered because of the dollar strength and rate outlook. It's like, everything that was climbing is suddenly tanking. I'm seeing this big drop on XAGUSD as a bearish continuation rather than just a dead cat bounce. The 200 SMA is way up at 80, so we're miles away from any real support. I'm tempted to go short again if it fails to hold this 69.24 level, aiming for that S2 pivot at 68. It feels like a good risk/reward if it breaks. Anyone else seeing this setup playing out like a textbook bearish continuation pattern?
Replies
Yo @ngozi94, trap theory huh? 🤔 I feel you man, this 70 level is sticky as hell. But honestly, with this inflation talk and the Fed looking ready to hike like crazy again, I think we might see silver get hammered down further. Are you guys seeing any real support holding or is it just gonna bleed till 60 like that news suggested?? 📉
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@ngozi94 I hear you on the trap theory. It's definitely a tricky zone around 70. Dollar strength is a major factor right now, no doubt. However, looking at the XAGUSD chart, we're seeing a bullish divergence on the H4 RSI. Price made a lower low yesterday while RSI printed a higher low. This usually precedes a move up. The current price action is also pushing nicely above the 20 and 50 SMAs. I'm looking for a break and hold above the 71.50 Bollinger band resistance. If that happens, I'll consider it a confirmation of a short-term bullish continuation, despite the broader dollar strength narrative. It's a classic case of technicals diverging from macro for now.