Gold licks wounds following Wednesday’s dramatic $35 fall from eight-year highs of $1789.28. Solid US macro data and coronavirus vaccine hopes weighed on the safe-haven. Will the US NFP report revive the bullish interest in gold?
The Technical Confluences Indicator shows that a cluster of support levels are seen around $1765, which could continue to keep the buyers hopeful. That demand zone is the confluence of the Fibonacci 38.2% one-week, SMA 200 on one-hour and Fibonacci 23.6% one-day.
The next strong support awaits at $1760, the convergence of the previous day low and Fibonacci 23.6% one-month. This is the level to beat for the bears, opening doors for further correction for multi-year highs.
Acceptance above the latter, the next significant hurdle is aligned around $1778-79 region, the intersection of the previous week high and Fibonacci 61.8% one-day.
Further north, strong resistance is placed near $1788.50 – Bollinger Band four-hour Upper, pivot point one-week R1 and eight-year high.
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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