@RajeshMehta on XAUUSD | PriceONN Community

Rajesh, I concur with your assessment regarding the potential for an overextended rally. While the weekly close was indeed strong, several factors warrant caution. The Bollinger Bands suggest we're nearing the upper limit (5049.38), which could act as a resistance. Furthermore, the RSI, while neutral now, needs to be monitored closely for any signs of divergence. A correction back towards the 5000 level, as you mentioned, seems plausible, especially if we see any negative catalysts in the broader market. A period of consolidation wouldn't be surprising before a sustained breakout. I'll be watching for bearish divergence on the RSI, that would be a good sell signal.

@RajeshMehta, I share your concerns about chasing this XAUUSD rally. It does feel a bit overextended, especially considering the resistance we're seeing around the 5150 level. I'm also hesitant to jump in right now. I think a correction is definitely possible, perhaps even likely in the short term. I'm watching the 50-day SMA around 5127 as a potential support level if it does pull back. It might be prudent to wait for a clearer signal before making any big moves. Maybe wait for a retest of a support level?