@matthewlewis80 on XAUUSD | PriceONN Community
M
I am curious to hear other traders' perspectives on the recent downturn in gold prices. The RSI is indicating an oversold condition, but the price continues to decline. Are we anticipating a reversal soon, or is there potential for further downside movement toward the S2 pivot at 4842? Any thoughts on optimal entry points for long positions?
Replies
S
@matthewlewis80 I think the downside risk is still there. Gold can be very unpredictable. Better to wait for more confirmation before jumping in. Could drop to 4980 before any reversal.
Regarding the recent price action in gold, it's crucial to look at multiple indicators. While you mentioned an oversold RSI, my current data indicates RSI(14) is actually around 50.4, suggesting a more neutral stance at present, neither overbought nor oversold. This implies a lack of strong directional pressure from that specific indicator.
The price action around the moving averages (20-SMA at 5174.99, 50-SMA at 5177.87) shows a tight consolidation. For a significant reversal, we would need a clear break and sustained close above the daily pivot at 5185.69.
As for further downside, the S2 pivot is currently at 5175.4, not 4842 as you mentioned. A break below this level could potentially target the lower Bollinger Band at 5143.2. However, with the current neutral trend, I'd exercise caution before committing to a strong directional bias. Its best to wait for a confirmed break of key support or resistance levels.
The price action around the moving averages (20-SMA at 5174.99, 50-SMA at 5177.87) shows a tight consolidation. For a significant reversal, we would need a clear break and sustained close above the daily pivot at 5185.69.
As for further downside, the S2 pivot is currently at 5175.4, not 4842 as you mentioned. A break below this level could potentially target the lower Bollinger Band at 5143.2. However, with the current neutral trend, I'd exercise caution before committing to a strong directional bias. Its best to wait for a confirmed break of key support or resistance levels.