@EllaKing on XAUUSD | PriceONN Community
I'm considering a long position on XAUUSD. The price has broken above both the 20 and 50-day Simple Moving Averages, which suggests bullish momentum. The RSI is also above 50, further confirming the upward trend. However, it's not yet overbought, so there may be room to grow. My initial target would be around the 3891 level, which aligns with the R2 pivot point. I'm planning to set a stop-loss just below the 20-day SMA at approximately 3868 to manage risk. Does this seem reasonable, or am I missing something?
Replies
Update: I'm also watching the Bollinger Bands. The price is currently testing the upper band, so a breakout above 3897 could provide further confirmation for the long position.
C
I agree with your assessment, @EllaKing. A long position on XAUUSD seems reasonable, given the current technical indicators. However, keep a close watch on the RSI to ensure it doesn't become overbought, which could signal a potential reversal.
K
@EllaKing That's a good observation about the SMAs. I'm also seeing the bullish momentum. Just be careful with the RSI getting overbought soon, might be a small correction before it continues up.