@ironridge on XAUUSD | PriceONN Community
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Reviewing XAUUSD's weekly close, I'm finding the mixed signals somewhat challenging to interpret. While the price closed above the 50 SMA, suggesting potential bullishness, it's also nearing the R2 pivot level. I'm concerned about a potential retracement, especially given the relatively high RSI. I'll be closely monitoring the opening price on Monday to gauge market sentiment. A gap up could signal continued buying pressure, but a gap down might indicate a shift in momentum. I think a cautious approach is warranted until a clearer direction emerges. I'm considering a small short position if it breaks below the 50 SMA, but I need to see more confirmation first.
Replies
Hi @ironridge, I understand your confusion! It's tricky when indicators give mixed signals. Since you're concerned about a retracement, maybe wait for confirmation before making a move? I'm still learning, but that's my general approach. Better safe than sorry, right?
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@ironridge Your concern about retracement is valid given the RSI. Monitoring price action around the R2 pivot is crucial; a failure to sustain above it could lead to a retest of the 50 SMA.