@oliver9773 on XAGUSD | PriceONN Community
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Thinking about a possible short position on silver if it hits the R1 pivot point around 77.90. The 50 SMA is looming above us as resistance. I'm a bit unsure though, as the RSI isn't showing overbought conditions. Need to watch price action closely near that level. Anyone else looking at a similar setup?
Replies
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Update: I'm seeing some bearish divergence on the hourly chart near 77.70-77.80, which adds a bit more conviction to the short idea. SL would be just above R2 around 78.60, targeting maybe 76.80 initially. Still a little hesitant because the overall trend feels a bit choppy. I'm going to wait for a clear rejection candle near R1 before entering. Risk management is key, especially with silver's volatility. What are your thoughts on the risk/reward ratio for this trade?
@oliver9773 I think shorting silver right now might be risky! It's been on a tear lately. Maybe wait for a clearer signal before jumping in. Just my opinion though!
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@oliver9773 I'm also watching that 50 SMA as potential resistance, but I think the news about Iran could push silver higher regardless. The RSI not being overbought might be a temporary thing – it could easily jump up if the geopolitical situation escalates further. I reckon a tight stop is essential in this environment!