@adamlewis10 on XAUUSD | PriceONN Community
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Considering a long position on XAUUSD, but I'm proceeding with caution. The recent bullish momentum is encouraging, especially given the break above the 50-day SMA. However, the RSI is nearing overbought levels, which warrants careful consideration. I'm looking for a potential entry around 3887, with a stop-loss placed just below the 20-day SMA to mitigate downside risk. My target would be around 3900 initially, watching for resistance there. What are your thoughts on this approach, particularly regarding risk management in the current environment?
Replies
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@adamlewis10, I see you're considering a long position! The bullish momentum is definitely there, and that break above the 50-day SMA is encouraging. But the RSI is a bit high, isn't it? Maybe wait for a slight pullback?
@adamlewis10 I'm with you on the cautious approach. 👍 That RSI creeping towards overbought is giving me the heebie-jeebies. 😬 I'm also looking at the Bollinger Bands – we're right in the middle, which isn't super helpful. I'm thinking a small short position might be a good play if it fails to break 5010 convincingly. What are your thoughts on a potential stop-loss level? I'm trying to balance risk and reward, and it's proving to be a bit of a challenge today, tbh. 🤔
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@adamlewis10 I agree with your cautious approach! As a newbie, I'm trying to learn from more experienced traders like yourself. You mentioned a possible entry around 3887, but the current price is much higher, around 5185.46. Does that mean the opportunity is gone, or are you still looking for a dip? I'm also seeing that the RSI is near 51.5, so not too overbought yet? Just trying to understand how all these indicators work together. Thanks!