Gold has been on the back foot in a turbulent week as investors were in a “sell everything” mode. How is XAU/USD positioned as the week draws to an end?
The Technical Confluences Indicator is showing that gold is capped at $1,487, which is the convergence of the Simple Moving Average 50-1h, the previous 4h-high, and the Fibonacci 61.8% one-day.
If it breaks higher, the next target is $1,495, where the Bollinger Band 4h-Middle and the Pivot Point one-day Resistance 1 meet the price.
Further up, $1,502 is the confluence of the 200-day SMA and the previous daily high.
Noteworthy support awaits at $1,478, which is a juncture of lines including the Fibonacci 38.2% one-day and the BB one-day Lower.
Further down, an additional cushion awaits at $1,473, where the Fibonacci 23.6% one-day 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.
Learn more about Technical Confluence
Share
