Gold suffered a fall below $1,700 last week, amid a dose of optimism, including the upbeat US jobs report. Can it recover? The precious metal seems well-positioned on the chart.
The Technical Confluences Indicator is showing that XAU/USD has strong support at $1,689, which is a dense cluster of lines including the Bollinger Band 15min-Middle, the BB one-day Lower, the Fibonacci 38.2% one-day, and the Fibonacci 23.6% one-week.
The next considerable cushion is $1,671, where the previous monthly low and the previous daily low converge.
Looking up, the first upside target is $1,699, which is the confluence of the Fibonacci 61.8% one-day and the Fibonacci 38.2% one-week.
Further above, the target is $1,707, which is where the Fibonacci 61.8% one-month 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
