Gold has been hovering around $1,800 after hitting a high of $1,817 and correcting to the downside. IS it ready to rise? XAU/USD has solid support and two technical levels in its sights.
The Technical Confluences Indicator is showing that gold is battling $1,805, which is the convergence of the Simple Moving Average 20-4h and the Pivot Point one-week Resistance 2.
Support awaits at $1,803, which is a dense cluster of lines including the Bollinger Band 1h-Middle, the Fibonacci 38.2%, the SMA 5-4h, the SMA 10-1h, and more.
Even lower, the next confluence is at $1,786, which is where the previous monthly high, the SMA 200-1h, and the SMA 50-4h converge.
The upside target for gold bulls is $1,814, where the BB one-day upper and the Pivot Point R1 meet up.
Further above, $1,821 is a juncture including the PP one-month R1 and the PP one-week R3.
Here is how it looks on the tool:
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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