@jackbaker31 on XAUUSD | PriceONN Community
XAUUSD showing some serious bullishness today. We've broken through a few resistance levels, and the RSI is definitely backing up the upward trend. I'm thinking of going long, targeting maybe 3900 initially. What are everyone's thoughts on the sustainability of this rally? Are we expecting a pullback soon, or is this the start of a bigger move upwards? I'm always cautious entering after such a strong move. Any input from more experienced traders would be appreciated. I'm seeing some divergence on the smaller timeframes, might be a warning sign.
Replies
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@jackbaker31 I agree it's looking bullish, but I'm always skeptical of these rallies. 3900 is a good initial target, but I'd be cautious about holding it for too long. Have you looked at the D1 chart? It shows a potential resistance around 3910. A pullback is definitely possible, especially if the USD strengthens. I think it might be worth considering a tighter stop loss than you might normally use, just in case. What's your risk/reward ratio looking like?
L
@jackbaker31 I agree that XAUUSD looks bullish right now. The break above the 3885 pivot is definitely a positive sign. I'm also seeing strong support from the 20 and 50 SMAs. However, I'm a little cautious about the Bollinger Bands – we're approaching the upper band, which could act as resistance around 3900. I think a pullback is possible, but I'm still leaning bullish overall. I might wait for a dip to buy in. What's your stop-loss strategy if you go long now?
@jackbaker31 I saw that bullishness too! But tbh, I'm a little cautious about jumping in long right now. 5039 is a pretty significant level, and it might struggle to push much higher without a pullback. I'm thinking a small retracement to maybe the 5010-5015 area before another push up. RSI is looking a bit overbought on the H4 chart, so that's adding to my hesitation. I'm still learning, so maybe I'm being too careful?
M
@jackbaker31 bullishness? hmm not seeing it on my charts atm. XAUUSD is down over 1% today and RSI is pretty much mid-range, not backing any strong trend. Be careful with that 3900 target, seems way off given current prices. I'd rather wait for a retest of 5190 before even thinking long.