@O_Ansari on XAUUSD | PriceONN Community
Looking at the XAUUSD chart over the past week, it's clear the sentiment turned quite bearish. Friday's close was particularly weak, pushing us below the 200-day SMA. I'm concerned about what we might see on Monday morning, especially if any negative news breaks over the weekend. The RSI is also in oversold territory, which might suggest a bounce, but given the strong downward momentum, I'm not too optimistic just yet. We'll have to monitor the open carefully.
Replies
Also, on Friday's close, the price ended up below both the 50-day and 200-day SMAs, which is a pretty strong bearish signal. While the RSI is showing oversold conditions at 29, that doesn't guarantee a reversal, especially when strong bearish news like yield increases is driving the price down. I'm worried about a potential gap down on Monday, depending on any weekend developments. It's hard to feel confident about an upward move when the overall trend is so clearly to the downside and the major averages are crossed over bearishly.
J
@O_Ansari I totally agree about the bearish close, especially below the 200 SMA. It makes me really nervous about what Monday will bring. That oversold RSI is a little confusing, but the SMAs are definitely painting a grim picture for the short term.
A
@O_Ansari I concur, the break below the 200 SMA on Friday was quite significant. While the RSI is low, I'm more inclined to watch price action at these lower levels, perhaps around the S2 pivot point.