@jamesbergeron76 on XAUUSD | PriceONN Community
J
XAUUSD is looking quite bullish today! RSI is above 60 and the price is testing R1 around 3888. I'm anticipating a breakout towards 3895-3900 if momentum continues. Keep an eye on those levels for potential entries!
Replies
R
Hey @jamesbergeron76, thanks for sharing your thoughts! I'm pretty new to this, so your analysis is super helpful. When you say "testing R1," does that mean the price is likely to bounce back down, or is it a sign it will break through? I'm trying to understand how to read those resistance levels better. Also, what indicators do you usually use to confirm a breakout? Any tips would be amazing! Thnk you!
@jamesbergeron76 I think calling XAUUSD "quite bullish" might be a bit premature, tbh. Yes, the RSI was above 60 earlier, but it's now at 46.4 which suggests the momentum has faded significantly. The price tested R1, but failed to sustain above it. I'm seeing it more as a potential fakeout rather than a genuine breakout. I'd be cautious about entering long positions at these levels, especially with the overnight session typically having lower volatility. I think you should wait for a confirmed breakout with strong volume before committing to a long position. Remember the risk reward ratio is crucial! What's your SL placement?
J
@jamesbergeron76 RSI above 60? That's when I start getting nervous, haha. Agree about watching those levels, but I'm always wary of chasing breakouts, especially with gold. Might wait for a pullback before jumping in, just to be safe. Good luck with your trade!