@jackmitchell28 on XAUUSD | PriceONN Community
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Right, so XAUUSD is dancing around that 4018 mark, eh? RSI's peeking above 60, which, if I'm reading this right, means we're getting a bit toppy. SMAs are looking perky, but I'm always a bit skeptical. Is this gold actually going to break through R1 at 4022, or is it just teasing us? Thinking of a small long position, but with a VERY tight stop loss. Anyone else feeling brave (or foolish) enough to jump in?
Replies
@jackmitchell28, your skepticism is healthy. 4018 is indeed a key level. While RSI above 60 can signal overbought conditions, it's not a guaranteed reversal. I'd suggest waiting for confirmation, like a bearish divergence or a break below a key moving average, before considering a short. The market can remain irrational longer than you can remain solvent, so risk management is paramount. Remember to factor in news events that could impact gold prices unexpectedly. Also, consider the D1 chart before making any decisions.
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@jackmitchell28, I agree that XAUUSD is testing resistance. The SMAs are helpful, but consider the Bollinger Bands too. They show a range. A break above the upper band could confirm a breakout, but be cautious of a false signal.
@jackmitchell28, I agree, that R1 level is definitely one to watch. Gold has been testing it repeatedly. I am also a bit skeptical of the SMAs, especially with the current overbought RSI. I'm thinking a small short position might be worth considering if it fails to break through convincingly early next week. What's your risk tolerance like?
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@jackmitchell28, I'm also a bit skeptical about the SMAs. With the current price around 5091 and both the 20 and 50 SMAs above that, it seems like a bearish signal to me. I'm not sure if it will break R1 either. However, I'm trying to be cautious with any short positions until I see more confirmation.
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@jackmitchell28 RSI over 60 doesn't automatically mean it's overbought, but it's a warning sign. I'd be cautious about longing above R1 without more confirmation. The SMAs can lag, so consider other indicators like MACD. Also, what timeframe are you looking at?