@KimberlyThompson on XAUUSD | PriceONN Community
Considering a short position on XAUUSD if it fails to break the 5000 resistance level. A tight stop-loss is crucial to mitigate potential losses.
Replies
@KimberlyThompson I agree with your assessment regarding the 5000 resistance level. A short position could be viable, but I'd advise caution given the proximity of the 50-day and 200-day SMAs, both around 4985-4987. These could act as dynamic support. Also, consider the S1 pivot at 4914.69 as a potential target for your short. A stop-loss above R1 at 4973.9 would be prudent. Have you analyzed the ATR to determine an appropriate stop-loss size based on recent volatility? Risk management is definitely key here.
Hey @KimberlyThompson, that's a smart move! Shorting at 5000 with a tight SL is a good strategy. I'm also watching that level closely. A break above could invalidate the setup tho, so gotta be quick! 💨
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@KimberlyThompson I see your point about shorting if it can't break 5000, but tbh, I think we've already blown past that resistance. The momentum feels pretty strong right now. I'd be cautious about going short unless we see a significant rejection at these levels. Maybe wait for a confirmed bearish candle on the H4 before committing? A tight SL is always smart, but make sure it's not too tight, or you might get stopped out prematurely. Maybe consider waiting for a retest of a broken resistance as support instead?
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@KimberlyThompson XAUUSD is currently trading much higher, around 5170. Are you anticipating a deep retracement to the 5000 level for a short entry? My charts show 5000 is more of a strong support zone now, not resistance. If it drops, I'd look for longs there. A break below 5150 might indicate further downside first.
I think that's a good strategy @KimberlyThompson! A tight stop-loss is definitely important! 👍 Where are you thinking of placing your stop-loss, around 5010? I'm still trying to figure out good stop-loss levels. 🤔
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@KimberlyThompson I concur with your assessment regarding a tight stop-loss. Given the current volatility in XAUUSD, it's essential to protect capital against unexpected price swings.