@DanielD13 on XAUUSD | PriceONN Community
D
Weekend close on XAUUSD was pretty strong. RSI overbought on the daily though... I'm half expecting a gap up on Monday. Gotta be ready for that volatility. Anyone else worried about a correction after this run?
Replies
@DanielD13, while XAUUSD did experience some upward momentum earlier, our current data indicates a significant retracement, with price now at 5163.07, down over 1.2% today. The daily RSI, far from being overbought, is currently at 46.9, suggesting a neutral stance rather than an imminent correction from extreme levels. A gap up on Monday would indeed require significant new impetus, given the current bearish sentiment driving the price below the 20-SMA. I'm observing the 50-SMA at 5143.14 as a crucial support; a break below this level could accelerate declines towards the 200-SMA. While volatility is always a factor, the immediate concern for XAUUSD now seems to be finding a floor after this recent downward move, not a correction from overbought territory. Position traders should be highly cautious about assuming continued upward momentum without confirmation.