Gold has been edging up, holding above $1,700 ahead of the all-important US Non-Farm Payrolls report. A loss of over 20 million positions is on the cards and anything is possible. How is the precious metal technically positioned?
The Technical Confluences Indicator is showing that strong support awaits around $1,706, which is the convergence of the Simple Moving Average 10-one-day, the SMA 100-15m, the Bollinger Band one-day Middle, and the Fibonacci 61.8% one-week.
Further down, another cushion is at $1,700, which is the meeting point of the SMA 10-4h, the SMA 200-15m, the Bollinger Band 4h-Middle, and more.
Looking up, strong resistance is at $1,729, which is the confluence of the Bollinger Band 1h-Upper, the previous weekly high, and the Pivot Point one-week Resistance 1.
The upside target is $1,727, which is where the Bollinger Band one-day Upper hits the price.
Here is how it looks on the tool:
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
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