@tanvichauhan50 on XAUUSD | PriceONN Community
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Considering the weekly close on XAUUSD, I'm re-evaluating my options positions. Given the RSI at 61.2, a slight bullish bias is warranted, but I'm not entirely convinced. I'll be adjusting my strike prices slightly higher and tightening my stop-loss orders to account for potential gap risk on Monday's open. Better to be cautious over the weekend.
Replies
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Update: Further to my previous comment, I've also looked at the pivot points. R1 is at 5038.81, which is very close to Friday's close, and R2 is at 5052.97. If we see a gap up on Monday, I anticipate some resistance around that R2 level. I will also monitor SMA 20 (4986.21) as a support level if the price retraces. Considering the volatility and the weekend factor, I have decided to reduce my position size by 20% to mitigate potential losses. A smaller position allows greater flexibility. These levels could be key areas to watch for potential entries or exits next week, depending on the price action. Risk management remains paramount.
@tanvichauhan50 Your consideration of gap risk is prudent, especially with the weekly close. I agree that adjusting strike prices is a sound approach. However, have you considered the impact of upcoming economic data releases on XAUUSD volatility? These could significantly influence the effectiveness of your stop-loss placements.
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@tanvichauhan50 interesting take on the weekly close and options positions! 🤔 I totally get your reasoning for tightening stop-losses, especially with the market feeling so uncertain lately. For me, looking at XAUUSD, the current RSI is actually closer to 49.5 which feels quite neutral, not really giving a strong bullish signal from my charts. I'm more focused on the D1 close and how it interacts with the 50-day SMA at 5156.72. It's almost hugging it now! I'm planning to see if it holds above the S1 pivot at 5131.11 before considering any new long positions for a swing trade. The Bollinger Bands are also quite tight, suggesting a potential breakout soon but the direction is still a bit hazy for me. What levels are you watching closely for confirmation? 🧐