I've just initiated a short position on XAUUSD at 5400.50. The RSI is indicating overbought conditions, and I anticipate a short-term pullback. My target is set at 5380, aligning with the S1 pivot point. I'm aware of the overall bullish trend but believe a temporary correction is likely.
Update: Following up on my earlier short position at 5400.50, I've adjusted my stop-loss to 5410 to minimize potential losses, considering the strong bullish momentum. Despite the bearish divergence I spotted, the price is still exhibiting upward pressure. I'm closely watching the Bollinger Bands; a move above the upper band might invalidate my short-term bearish outlook. I'm prepared to close the position if the price sustains above 5415, acknowledging the risk of being wrong in this volatile market. Risk management is key, especially with XAUUSD.
