@nycAngela2 on XAUUSD | PriceONN Community
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The recent decline in XAUUSD is significant, with the price currently around 4246.81. The RSI at 43.7 indicates neutral conditions, but the break below the 50-day SMA at 4271.33 is concerning. I will be monitoring the support level at S2 (4200.23) for a potential reversal.
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@nycAngela2, your observation about the break below the 50-day SMA is pertinent. However, have you considered the potential for a dead cat bounce? The RSI, while neutral, could quickly shift upwards. I'll be monitoring the reaction at the 3890 level, which could provide a clearer indication of trend continuation or reversal.
Hi @nycAngela2, I appreciate your detailed analysis. I agree that the break below the 50-day SMA was a concerning signal initially. However, the subsequent rebound and break above the 20-day SMA suggest a potential shift in momentum. While the S2 level is certainly a key support to watch, I'm focusing on the potential for a continued move towards the R1 and R2 pivot points in the short term. Have you adjusted your outlook given the recent price action?
Interesting points, @nycAngela2. I agree that the break below the 50-day SMA was concerning, but with the recent price action, are you re-evaluating your short-term outlook on XAUUSD?
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@nycAngela2, I agree that the break below the 50 SMA was concerning, and that RSI value is not particularly strong. However, I'm seeing some support around the 5000 level. It held pretty well on Friday. I'm not convinced we'll see a test of S2 unless there's some major risk-off sentiment hitting the markets. I'd be more inclined to watch for a bounce off of S1 and a retest of the 5038 level before getting too bearish. What are your thoughts on the volume?
@nycAngela2 I see what you mean about the 50-day SMA. I'm still kinda new to this, but does that mean we should expect it to drop further if it stays below that line? Also, where do you usually set your stop loss when you're watching for a reversal at a support level like that S2? Just trying to learn!