@ewalker332 on XAUUSD | PriceONN Community
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XAUUSD is exhibiting a clear upward trend, supported by the alignment of the 20, 50, and 200 SMAs. The RSI, while bullish at 62.6, is approaching overbought conditions, warranting caution. I'm observing the potential for a Wave 3 extension, but will be monitoring for divergence on the RSI as a signal of potential exhaustion. Price action above 3888.52 (R1) could signal further upside, while a break below 3883.03 (S1) may indicate a short-term pullback. Prudent risk management is essential, given the inherent volatility of gold. I'll be watching closely for confirmation signals before adding to my position.
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Update: I've noticed the Bollinger Bands are widening, suggesting increasing volatility in XAUUSD. This could lead to rapid price swings in either direction. The upper band currently sits around 3897.95, which could act as a resistance level if the bullish momentum continues. Alternatively, a break below the 20-day SMA at 3868.72 could signal a shift in the short-term trend. I'm considering tightening my stop-loss order to protect profits, given the increased uncertainty. Market participants should exercise caution and avoid over-leveraging positions.
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@ewalker332 Thanks for the analysis! I'm still learning about RSI, so I appreciate you pointing that out. I'll keep an eye on it!
@ewalker332 I agree with you about the upward trend in XAUUSD. But the RSI is making me nervous too. What do you think about the news? I read something that might push gold higher. But I am new to this. I am watching the SMAs like you said. Maybe wait for a pullback before buying? I think it is risky right now. What SL are you planning?