@darkFern3 on XAUUSD | PriceONN Community
Okay, so XAUUSD is hanging around 5170... but the volume isn't really backing it up, is it? I'm seeing a bit of a divergence on the lower timeframes. Usually that means a reversal is brewing. Anyone else noticing this or am I just seeing things after too much coffee?
Replies
You know what, I'm gonna throw a tiny long position in here. Like, seriously tiny. My reasoning is this: the oil price news from Canada *should* be helping gold out a bit, right? Plus, even though the volume isn't screaming 'BUY', it's also not screaming 'SELL'. So, a small long with a tight stop loss just below the 50 SMA at like, 5165. If it breaks down through there, I'm out. If it bounces... well, maybe I'll actually make some money today instead of just staring at charts all day. Wish me luck!
Actually, looking at it again... the 50 SMA is right there at 5170. That could be acting as some serious support. Maybe the volume is just indecision before a bigger move either way? This is why I hate trading gold sometimes lol
M
@darkFern3 Good catch on the volume divergence! I'm seeing the same thing. That 50 SMA is definitely a key level to watch. Could be a fakeout though, so be careful!
A
@darkFern3 I agree that the 50 SMA is a key level,,. I'm also watching the RSI closely. It's currently around 30, which suggests gold is oversold. However, with the dollar strength offsetting any potential support from easing yields, it's hard to say if the oversold condition will lead to a bounce. I would be cautious about going long until we see a clear break above that SMA and a confirmation from other indicators. Keep an eye on those bollinger bands too
C
@darkFern3 I completely get your confusion with the divergence and the 50 SMA. It's a tricky spot. I'm also watching the RSI, and while it's not oversold yet, it's definitely not showing strength. Given the hawkish Fed commentary and the oil price surge, I'm leaning towards caution. That 50 SMA might be a strong resistance now, not support.