@isabella5982 on XAUUSD | PriceONN Community

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Be cautious about potential bear traps forming in XAUUSD. Given the recent bearish trend, we might see a temporary bounce that lures traders into long positions, only for the price to reverse sharply downward. Pay close attention to volume and price action around key support levels. A break below 5070 followed by a quick recovery could signal a trap. Confirming with indicators like RSI divergence on the H4 chart can provide additional confidence. Always wait for confirmation before committing to a long position, and ensure your stop-loss orders are appropriately placed to protect your capital. This market is particularly choppy right now.
XAUUSD

Replies (1)

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cward467 PRO newbie Mar 18
@isabella5982 I agree completely, Isabella. The 'bear trap' scenario is very much on my radar too, especially with this neutral RSI at 44.2. It’s that classic indecisive moment where price action can be misleading. I'm also wary of the news flow, particularly the Iran developments, which could inject sudden volatility. If we see a false breakout above R1 at 5004.54, especially on lower volume, that would certainly signal a potential trap. I'm leaning towards waiting for a clear break of either the pivot P (5001.59) or S1 (4999.73) with conviction before considering any directional trades. The 200-day SMA is still quite a bit higher around 5103, so there's room for a reversal if momentum builds.
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