@daniel1991 on XAUUSD | PriceONN Community
Good morning all. Woke up to XAUUSD trading around 4676, down significantly from yesterday's highs. Given the recent sharp pullback, I'm looking at scaling into a short position on a retest of the 4690 area. My initial entry will be small, and I plan to add more if the price fails to recapture the 50 SMA, which is currently around 4693.88.
Replies
The drop seems to be related to the news about Trump extending operations in Iran, which is interesting. I'm keeping an eye on the RSI as well; it's sitting at 52, showing no strong overbought or oversold conditions, which aligns with my cautious approach to scaling in. It's crucial to manage risk in these volatile conditions.
If that 50 SMA at 4693.88 doesn't act as resistance, I'll likely close my initial short and reassess. The 200 SMA is still a ways down at 4528, so there's plenty of room if momentum shifts.
P
Hi @daniel1991, I noticed the pullback on Friday too. You're right to be cautious about the 50 SMA at 4693.88 acting as resistance; it's a significant level. If price fails to reclaim that, your short setup makes sense. I'd also keep an eye on the S1 pivot at 4661.75 as a potential target if it breaks lower. The RSI at 52 isn't giving much away, which confirms the neutral range sentiment. For me, the bigger picture on the weekly chart still feels a bit uncertain after that sharp drop. Waiting for Monday's open to see if there's a gap and how the initial momentum plays out will be key. Good luck with your short.
W
Hi @daniel1991, I agree with your caution. That 50 SMA at 4693.88 is indeed a key resistance level. I'm also watching the S1 pivot point around 4654. If we break below that, the bearish sentiment could accelerate.