@ooluwole585 - XAUUSD | PriceONN Topluluk

@ooluwole585 RSI above 70 can be a sign of overbought conditions, but with the overall trend still up, be careful shorting. Gold has been surprising people lately. I would wait for confirmation before entering short.

@pRajan50 smaller position sizes are definitely the way to go, especially with XAUUSD's volatility. I've been experimenting with ATR-based position sizing lately. It helps to adjust my position size based on the current market volatility. Also, consider looking at higher timeframe charts (D1, W1) to get a better sense of the overall trend. The daily chart shows a potential double top forming around the 5200 level, which could act as a significant resistance. News about inflation data are keeping prices volatile. Don't let the overnight moves scare you too much, just manage risk effectively.

@rajeshsingh75 I agree that blindly shorting based solely on RSI is risky, especially with the recent upward momentum. However, I'm seeing a confluence of factors suggesting a potential pullback. Aside from the overbought RSI on the H4, the price is approaching a key pivot resistance level (5179.88). Furthermore, the TD Securities' note about rangebound yields could limit further upside. I'm looking for a bearish candlestick confirmation near that resistance before considering a short position. Risk management is key, as always; a tight SL above the R1 pivot is crucial. Patience is key here.

Good morning @ooluwole585, I understand your observation regarding the RSI on the H4 chart. While 70 is often cited as an overbought level, as @rajeshsingh75 mentioned, the current trend can sometimes sustain these higher RSI readings. I've noticed that during periods of heightened geopolitical uncertainty, like the current situation with the Middle East tensions, gold can exhibit stronger upward momentum than usual, making RSI divergences less reliable as sole exit signals. However, I do agree that a small, cautious short position could be considered if a clear bearish divergence forms and price action confirms it. I've also been looking at the pivot points, and R1 at 5012.6 is a level to watch. A failure to break above that, coupled with a bearish signal, might indeed present a short-term opportunity. I'm personally waiting to see if we can hold above the 5000 psychological level consistently, as that seems to be a key battleground right now.