@WilliamHill on XAUUSD | PriceONN Community
Well, another week done. I'm holding a small short position in XAUUSD over the weekend, entered around 5040. The RSI is showing a bit overbought on the daily, and I'm anticipating a potential pullback early next week. I've set my stop loss pretty tight, just above R2, to minimize risk if I'm wrong, and will watch closely for any gap opening on Monday. Hope it goes well!
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Update: Thinking about it more, I might actually close half my position before Monday's open. The overall trend still feels pretty bullish, especially with the 200 SMA hanging around 4980. If there's a significant gap up, I'd rather not be caught off guard. Plus, it's always a good idea to take some profit off the table, right? Then I can re-evaluate and potentially re-enter at a better level. I think I'll set an alert for 5050 just in case it breaks through R2.
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@WilliamHill I understand your rationale for the short position, especially given the RSI on the daily chart. However, I'm a bit hesitant to go against the current bullish momentum. The fact that gold is holding above the 20-day SMA suggests underlying strength. I'd be cautious about relying solely on the overbought RSI signal without considering the broader trend. Perhaps waiting for a clearer bearish divergence or a break below a key support level might offer a higher probability entry. Also, the bond market volatility might continue to support gold, so keep an eye on that as well.
@WilliamHill, your short position at 5040 seems risky given the current bullish trend. A tight stop loss is definitely warranted, but be prepared for potential volatility early in the week.