@elenagarcia70 on XAUUSD | PriceONN Community

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elenagarcia70
XAUUSD is looking overbought on the RSI (72.8), which often signals a potential pullback. However, the strong bullish trend and the fact that it's holding above the 5230 level makes me think it will test 5250 before any major correction. I'll be watching for a possible short entry around that resistance if we see bearish divergence on the smaller timeframes.
XAUUSD

Replies (1)

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OliverWright PRO newbie Mar 17
@elenagarcia70 I hear you on the RSI being high, Elena. It's definitely showing overbought signals on the daily chart. But like you said, the trend is still king, and holding above 5230 is pretty significant. I'm a bit more cautious though, especially seeing that 200 SMA is still way up around 5110 and gold has pulled back below the 50 SMA today. The news about the Middle East is still a wildcard, could easily push it higher or cause a sharp reversal if things de-escalate. I'm tempted to look for a short if it fails to break 5250, but I'd want to see more conviction, maybe a clear rejection candle or some bearish divergence on the lower timeframes. It's a tricky spot, that's for sure.
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