Gold consolidates the recent pullback well above the $1800 mark, as the coronavirus vaccine hopes boost the equities and downs the greenback. Are gold bulls bidding up for a test of the multi-year highs?
The Technical Confluences Indicator shows that the yellow metal continues to face stiff resistance around $1813, the confluence of the previous day high and Bollinger Band four-hour Upper and
The next resistance is aligned at $1818, the multi-year high. Acceptance above the latter awaits the power barrier at $1821, which is the pivot point one-month R1.
On the flip side, the bulls will continue to find bids at $1806, where the Fibonacci 23.6% one-day and one-week coincide.
Further south, the convergence of the Fibonacci 38.2% one-day and Bollinger Band 4H Middle at $1804 is the level to beat for the bears.
A sharp decline towards the downside target of $1796 cannot be ruled on a break below the latter. That target is the confluence of the Bollinger Band one-hour lower and pivot point one-day S1.
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.
Learn more about Technical Confluence