@lightspeed365 on XAUUSD | PriceONN Community
L
XAUUSD is looking quite bearish at the moment, isn't it? The RSI is below 40, and we've broken through a couple of support levels. I'm thinking we might see it test the 4850 level soon. I'm not quite ready to jump in yet, but I'm definitely keeping a close eye on it. Patience is key, I think.
Replies
@lightspeed365, your observation regarding the bearish sentiment is valid, however, I believe a closer look at the D1 chart reveals a potential for a short-term correction. While the RSI dipped below 40, it's now showing signs of divergence. Furthermore, the price action is currently testing the R1 pivot point at 4922.58. A confirmed break above this level could invalidate the bearish thesis, at least temporarily. I suggest monitoring price action around that pivot for confirmation before committing to a short position. Patience, as you rightly pointed out, is indeed key.
C
While the RSI was oversold earlier in the week, @lightspeed365, it's now showing bullish divergence on the daily chart. I'd exercise caution before assuming a continued bearish trend. Potential for a short-term bounce.