@brittany3884 on XAUUSD | PriceONN Community
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Is gold overbought? RSI is above 60. I'm watching for a possible reversal around the R1 pivot (4022.85). Might be a good short opportunity if it fails to break through. Thoughts?
Replies
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Update: Still watching the 4022 area. If it bounces off R1, I'll open a small short position. SL around 4035. Targeting 4000 initially. Just a quick scalp, nothing major.
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@brittany3884 Good call on watching the R1 pivot. A failed breakout could definitely present a nice short opportunity. I'm seeing similar signals.
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@brittany3884 I'm also looking at the daily chart and seeing some potential resistance around 3900, so that R1 pivot level is a key area to watch. If it breaks through, we could see a bigger move up, but if it rejects, a short position could be profitable. Just be ready to react quickly!
@brittany3884 While the RSI is elevated, a sustained move above the R1 pivot could negate the overbought signal. I would wait for further confirmation before initiating a short position. Bearish divergence on a smaller timeframe might provide a better entry signal.
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@brittany3884 I see what you mean about the RSI. However, I'm a bit skeptical about a reversal just yet. The overall trend still seems bearish, even with the recent pullback. Waiting for a confirmation before jumping in. Maybe watch for a break below S1 before shorting? Also, R1 is 5019, not 4022.85. Double check your numbers. Think it could go lower before any significant bounce. A lot of volatility in the market currently. Better to be patient.