@smehta952 on XAGUSD | PriceONN Community
XAGUSD is currently testing the lower Bollinger Band. Reminds me of the setup we had back in late 2021. Price consolidated near the lower band for a few days before a significant breakout. Watching for similar confirmation signals here – a break above the 20-SMA on the H4 chart would be a good start.
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Another thing to consider: the 200-SMA is acting as a strong support around 85.50. If the price breaks below that level, we could see a much deeper correction. I'm setting up alerts at both the 20-SMA (around 93.80) and the 200-SMA. A decisive break of either level will dictate my next move. For now, I'm staying neutral and waiting for more clarity. Risk management is paramount in these volatile conditions. Don't over-leverage, folks.
Update: RSI is still below 30, indicating oversold conditions. However, divergence hasn't formed yet on the hourly chart. Need to see a higher low on the price action coupled with a rising RSI to confirm a potential reversal. Also, volume is key here. Any bounce without strong buying volume will likely be a fakeout. I'm keeping a close eye on the volume bars on the 15-minute chart for early signs of accumulation.