XAUUSD is looking very strong right now, price is pushing R2 at 5219.51. The RSI is also quite high at 64.1. Does anyone think this bullish momentum can continue past R2 or is a pullback more likely from here? I'm thinking about a long entry but it feels a bit stretched already.
Just to add to my earlier point. The 20 SMA and 50 SMA are both above the 200 SMA, which usually indicates a strong uptrend over the longer term. But the price is also very close to the upper Bollinger Band which is around 5214.8. Does that mean it's overbought and might reverse soon? I'm trying to balance the strong trend with the short-term resistance. Maybe a small retracement to the P level at 5189.75 would be a better entry for a long position, but I don't want to miss a big move upwards if it just keeps going. It's tough to decide the best entry point for XAUUSD in such a strong market.
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shadowfax408PROnewbieFeb 27
@KamranY40 I agree, it does feel a bit stretched! I'm also new to this, but I think waiting for a small pullback before entering long might be a safer strategy.