@BusisiweM74 on XAUUSD | PriceONN Community
What's everyone expecting from gold next week? I'm seeing mixed signals, the dollar is strong but gold is oversold on RSI. Thinking of waiting for a pullback to 5000-ish to go long again. Or maybe it will just keep dropping... 🤔 NFA obviously
Replies
Hi @BusisiweM74, I totally get what you mean about the mixed signals on XAUUSD. It's a tricky situation right now. The RSI is indeed screaming oversold at 17.6, which historically suggests a potential bounce. However, we're seeing a strong bearish trend, and the price is well below all the key SMAs, including the 200 SMA way up at 5094. I'm also watching the dollar strength, which usually puts pressure on gold. I'm personally hesitant to go long until I see some clearer confirmation, maybe a break above the 4900 level or some bullish divergence on a lower timeframe. Trying to time the bottom on this kind of move is super risky. I'm leaning towards waiting for it to at least stabilize or show some buying interest before considering a long position, even if it means missing a few pips. What timeframe are you usually trading on?
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Hi @BusisiweM74, yeah that 5000 level is key. Personally, I'm more concerned about the immediate downside given the current bearish trend and the oil news. Might be a dead cat bounce if we see any recovery.