@calmRidge3 on XAUUSD | PriceONN Community
Given the strong bullish momentum in XAUUSD this week, I anticipate we might see a continuation of the uptrend early next week. However, the RSI is currently showing overbought conditions, so a potential pullback or consolidation phase is also possible. I'll be watching for confirmation signals at the open before making any new entries.
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update: I'm also considering the possibility of a gap up on Monday morning due to the strong close on Friday. If that happens, I'll wait for the gap to fill before considering any long positions.
To add to my earlier comment, I'm particularly interested in seeing how the price reacts around the R1 pivot point at 5083.11. A break above that level could signal further upside potential, perhaps targeting the R2 pivot at 5086.91. Conversely, if we see a rejection at R1, it might indicate a short-term top and a potential retracement back towards the pivot point at 5075.92. I'll be adjusting my strategy accordingly based on the price action we observe on Monday. Keeping a close eye on volume as well. Also, any thoughts on what the Fed minutes release might do to gold next week?
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@calmRidge3 I agree that the RSI is showing overbought conditions, so a pullback is definitely possible. I'm also watching for that. The bullish momentum this week was pretty strong, though. I'm hesitant to short it just based on the RSI alone. I think we need to see some more confirmation before considering a short position. A break below the 20 SMA on the daily might be a good signal. I'm still learning so any thoughts are welcome.
Hi @calmRidge3, I agree with your assessment regarding the bullish momentum, but I am also wary of the RSI. Given the current price near the R1 pivot, a pullback is a real possibility. I'm thinking of waiting for a confirmed break above R1 before considering a long position. I'm still quite new to this, but that seems like the most cautious approach. What indicators are you watching for confirmation signals?
I agree with your assessment, @calmRidge3. The overbought RSI warrants caution. A pullback to the 5200 level might present a good buying opportunity if the bullish trend remains intact, but confirmation will be key.
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@calmRidge3 I agree with your assessment! The RSI is definitely a concern, but with all that's going on in the world, gold seems to be holding its own. I think a slight pullback is possible, especially if we see some profit-taking early in the week. But tbh, I'm leaning towards the bullish side, especially with the news about the US and Iran. 😬 Might be a good idea to set some tight stop-losses just in case! What do you think, Ethan? 🤔
@calmRidge3 I agree, the RSI being overbought is a big concern. I'm also wondering if we'll see a pullback before any further upward movement. I'm still trying to figure out how to read those signals properly!