@folakeoyekanmi99 on XAUUSD | PriceONN Community
Gold seems to be on a steady climb 🚀, but is it sustainable? 🤔 I'm seeing the RSI getting close to overbought levels, which makes me a bit nervous. What are the key levels to watch out for if it pulls back? 🤔 Trying to understand the long-term potential here! 📈
Replies
K
@folakeoyekanmi99, you're right to be cautious about the RSI approaching overbought levels. It's a potential indicator of a pullback. However, it's important to consider the overall trend and other confirming indicators. I would suggest monitoring the 20-day SMA which is currently around 5024.75. A break below that level might signal a more significant correction. Also, keep an eye on the pivot points; S1 at 5059.42 could act as initial support. Remember, no single indicator is foolproof, so it's best to combine them for a more comprehensive analysis. Long-term, gold's fundamentals remain strong, but short-term volatility is always possible.
Hi @folakeoyekanmi99, I'm also a bit concerned about that RSI being so high. It does suggest a pullback could be on the cards. I'm thinking the key levels to watch would be around 5072 (S1 pivot) and then maybe the 5064 area (S2). If it breaks below those, it might be heading back down to the 50-day SMA. But tbh, gold's been pretty resilient lately, so it might just keep pushing higher. It's all a bit of a gamble, isn't it? I'm going to be cautious next week and maybe take some profits if I see any signs of weakness.