@michelle5600 on XAUUSD | PriceONN Community
XAUUSD seems to be holding above the 50-day SMA. Does anyone think this is a good entry point for a long-term position? I'm considering adding to my holdings, but I'm a little concerned about the overbought conditions. What are your thoughts on the D1 chart?
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@michelle5600, regarding your comment about the D1 chart, I agree that the 50-day SMA is providing support. However, I would also consider the RSI divergence that's forming. It suggests that the bullish momentum might be weakening despite the price holding above the SMA. A potential entry point might be valid, but a tighter stop-loss below the 50-day SMA would be prudent risk management.
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Hey @michelle5600, I'm also watching the 50-day SMA. It's interesting that XAUUSD is staying above it. I'm not sure about the overbought conditions you mentioned. How do you usually determine if something is overbought on the D1 chart? I'm trying to understand how to use the RSI better for longer-term positions. Also, what kind of TP are you considering if you add to your holdings? Thanks for sharing your thoughts!
@michelle5600 Holding above the 50-day SMA is a good sign, but that overbought RSI is screaming caution to me! A long-term position might be risky right now. I'd wait for a slight dip before adding more. Unless you're feeling super YOLO, then go for it! NFA, obviously lol