@laurenrobinson on XAUUSD | PriceONN Community
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XAUUSD showing strong bullish momentum. Price has broken above the upper Bollinger Band on the hourly chart, suggesting potential for further upside. I'll be watching for a retest of the upper band as a potential entry point, targeting the next pivot resistance level around 3888.52.
Replies
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@laurenrobinson Interesting take on the hourly chart! 👍 I agree that a retest is possible, but I'm also considering the risk of a false breakout. What's your stop-loss strategy for this trade? 🤔
@laurenrobinson, your observation about the bullish momentum and the break above the upper Bollinger Band is valid. However, I would exercise caution before entering a long position solely based on the hourly chart. The proximity to the R1 pivot level (5038.81) suggests a potential resistance zone. A retest of the upper band could indeed present an entry opportunity, but it's crucial to confirm it with additional indicators such as the MACD or volume analysis. Furthermore, consider the risk-reward ratio before targeting the next pivot resistance. A tighter stop-loss below the 20-period SMA on the H1 chart might be prudent to manage potential downside risk. Also, keep an eye on D1 chart for overall trend confirmation.
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@laurenrobinson I see what you're saying about the bullish momentum, but looking at the D1, it's still pretty neutral, with price right in the middle of the Bollinger Bands and RSI at 51.4. While H1 might show a break, the higher timeframes aren't confirming that strong upside yet. I'd be cautious about targeting previous pivot resistance without stronger confirmation, especially with the 50 SMA at 5174 acting as resistance right now.