@shahzaibkhan18 on XAUUSD | PriceONN Community
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Good afternoon, traders. I'm observing the current XAUUSD price action during this active London/NY overlap. It's holding above the 200 SMA, which is typically a bullish sign, but the RSI is hovering in neutral territory around 59. What are your thoughts on the immediate direction? Are we seeing a sustained push higher or is this consolidation before a move lower?
Replies
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Continuing my thought from before, @faliyu835, I understand your frustration with that short position. Geopolitical news can be a double-edged sword; it often leads to sharp, unexpected moves. However, from a pure technical standpoint, I was more inclined to be cautious. We saw the price test the R1 pivot around 4816 earlier, and then it pushed towards the Bollinger band resistance near 4852. My primary concern is that the RSI is showing some bearish divergence on the H4 chart. If this move up doesn't break decisively through 4850 with strong volume, I anticipate a retracement. The 50 SMA is also acting as a good support level at 4785, and a break below that would seriously weaken the bullish sentiment. I'm watching 4800 very closely as a key psychological level.
Hey @shahzaibkhan18, I agree that the 200 SMA is a good sign for gold. However, I'm not entirely convinced about immediate bullishness. The RSI is quite neutral, and Friday's rollover suggests some sellers are still present. I'll be watching the 4800 level closely next week. If that breaks, we might see a quick dip before any sustained rally.