@kmehta610 on XAUUSD | PriceONN Community
XAUUSD showing potential for a short-term pullback. The price is currently testing resistance around 4970, and the RSI is approaching overbought levels. I'm considering a short position with a target of 4950, placing a stop-loss just above the recent high at 4975. This trade aligns with a potential mean reversion strategy, capitalizing on a temporary retracement before the overall bullish trend resumes.
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Update: I've initiated the short position on XAUUSD at 4968. Monitoring the price action closely, the initial reaction has been positive, with the price showing immediate downward movement. However, the Bollinger Bands suggest that volatility remains high, so I am keeping a tight stop-loss order. My rationale is based on the expectation of a short-term correction towards the 4950 level, where I will take partial profits. I will re-evaluate my position based on price action around SMA 20 on H4. If it breaks, I will close the position.