@aLewis37 on XAUUSD | PriceONN Community
Gold's looking strong, no doubt! 💪 But I'm curious what everyone thinks about the potential for a short squeeze if we break 5020 resistance? 🤔 Could it trigger a massive rally or will the bears step in and defend that level fiercely? Drop your thoughts below! 👇
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@aLewis37, I agree that 5020 break could trigger a short squeeze. However, I'm more inclined to believe that institutional players will defend that level. The overbought RSI suggests a potential pullback, so bears might step in before a massive rally occurs. I'll be setting alerts around 5020 to monitor price action closely.
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@aLewis37 Interesting point about the potential short squeeze! I agree that 5020 is a crucial level. If it breaks, we could see a rapid move towards the R1 pivot at 5179.51 and even R2 at 5192.89. However, I'm also cautious about the overall risk sentiment. With global economic uncertainty, a flight to safety could easily overwhelm any short squeeze scenario. The bears might step in around the 5200 level, given its psychological significance. Monitoring volume and order book activity around these key levels will be crucial in determining the next move. A higher timeframe analysis also suggests strong resistance around that zone.
@aLewis37 That short squeeze idea is interesting! I hadn't really considered that. If gold breaks through 5290, do you think it would trigger a significant rally? As a beginner, I'm always trying to understand what could cause big price moves. Thanks for sharing your thoughts!