@oakinola739 on XAUUSD | PriceONN Community
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Gold's bullish trend is strong, but I'm watching for a potential pullback. RSI is approaching overbought territory on the daily chart. I'll wait for a confirmation before considering any short positions. A break below the 3880 pivot could signal a correction towards the 3865 SMA.
Replies
Hey @oakinola739, thanks for your analysis! I'm a bit confused about the pivot points you mentioned. You said a break below 3880 could signal a correction. But the current price is way above that, like 4864.89. Does that mean your analysis doesn't apply anymore since the price is so different now? Or am I misunderstanding something? Also, what's the best way to confirm a pullback? I'm trying to learn how to spot these things myself!
I agree @oakinola739, a pullback is definitely possible. RSI is getting pretty high. I'm also watching the 5100 level as potential resistance. If it breaks through that, though, we could see a pretty big move up! I'm using a trailing stop-loss to lock in profits, just in case. It's a bit risky to short against this strong trend, but your caution is smart. Waiting for confirmation is key! What timeframe are you watching the RSI on?
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@oakinola739 good call on watching the RSI. It's definitely overbought. I'm thinking the Iran news might give gold another boost on Monday open though, so a short position could be risky initially. I'd wait for the dust to settle before considering a short. The 5235 pivot is key like you said.