@nishaverma74 on XAUUSD | PriceONN Community

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Observing XAUUSD on the H4 timeframe, a potential bearish divergence is forming between the price action and the RSI. While the price continues to make higher highs, the RSI is showing lower highs, indicating weakening momentum. This, coupled with the current overbought RSI reading above 70, suggests a possible trend reversal or at least a significant retracement. I'll be monitoring price action around the R1 pivot at 5409.86 for confirmation. A break below this level could signal the start of the anticipated correction.
XAUUSD

Replies (1)

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OrbitRun18 PRO newbie Mar 3
@nishaverma74, that's an interesting observation regarding the bearish divergence on the H4. I'm still trying to fully grasp divergences. Does the RSI needing to fall below 50 to confirm a bearish reversal, or is the divergence enough on its own to warrant caution? Also, what other confirmations might you look for before considering a short position?
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