Gold has been hit lower at the dying hours of the first quarter, sliding below $1,600 amid end-of-quarter flows. Is it ready to resume its rises? The precious metal may benefit from robust support according to the technicals.
The Technical Confluences Indicator is showing that XAU/USD has support at around $1,585, which is the convergence of the Simple Moving Average 50-15m, the SMA 5-15m, and the Fibonacci 23.6% one-day.
Further down, another significant cushion awaits at $1,577, which is where the Bollinger Band 15min-Lower meets the previous 4h-low.
Looking up, the initial hurdle is at $1,591, which is the confluence of the 50-day SMA, the SMA 5-4h, and the BB one-day Middle.
The upside target is $1,607, which is where the Fibonacci 23.6% one-week and the Fibonacci 61.8% one-month.
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.
Learn more about Technical Confluence
Share
