@tshepo8976 on XAUUSD | PriceONN Community

Hi @tshepo8976, I see your point about the bearish close on Friday and the potential retest of 5030 for a short entry. I've been monitoring XAUUSD closely this afternoon as well, and while the technicals do suggest some downside pressure with price below the 50-day SMA at 5017, I'm a bit hesitant to commit to a full short just yet. The news flow around the Middle East conflicts is still quite significant, and it tends to act as a strong underlying support for gold, even when technicals look bearish. I'm considering if that 5030 level might act more as a psychological resistance rather than a hard barrier for a short. If we see any escalation or significant new developments from that front, 5030 could easily be bypassed. I'm personally looking at the 4992.85 S2 pivot as a more immediate short-term target if a breakdown occurs, but I agree, a clean break above 5050 would certainly invalidate this bearish outlook.

My own approach is to wait for confirmation from increased volume on the breakdown or a clear rejection at resistance before entering a short. The RSI is currently neutral at 42.5, which doesn't scream 'oversold' or 'overbought', so there's room for movement in either direction. It's definitely a market where watching the headlines alongside the charts is crucial.

Hi @tshepo8976, I agree that the bearish close on Friday is concerning for gold. I'm also watching the 4585 area closely. It feels like it could break lower given the current market sentiment.

Hey @tshepo8976, I saw your post about going short on XAUUSD next week. That Friday close was definitely something, huh? Dropped like a stone from the highs. I'm a bit hesitant to jump in on a short right away, though. That RSI is sitting pretty low, like 29 or something. Usually when it's that oversold, there's a chance for a bounce. Maybe if it breaks that S2 pivot around 4417, then I'd feel more confident about the drop continuing. But honestly, after that big move down, I'm just watching to see if we get some kind of technical bounce early Monday. Could be a trap if we just keep falling without any pullback. What do you think about that RSI level?