Gold bulls eye critical resistance after coronavirus hits Apple – Confluence Detector
|Gold is on the rise as the coronavirus outbreak has taken its toll on Apple, which warned that it will be unable to meet its guidance due to iPhone production issues. The safe-haven shiny metal is on the rise. How is XAU/USD positioned on the charts
The Technical Confluences Indicator is showing that gold faces a relatively weak cluster of lines at $1,587, which includes the Bollinger Band 15min-Middle, the Simple Moving Average 5-1h, the SMA 10-15m, the previous hourly high, the BB 4h-Upper, the Fibonacci 161.8% one-day, and the previous 4h-high.
Critical resistance is at $1,590, which is where the BB one-day Upper and the Fibonacci 23.6% one-month converge.
Looking down, some support awaits at $1,584, which is the confluence of the SMA 50-15m, the previous weekly low, and the SMA 10-1h.
XAU/USD has robust support at $1,576, which is a juncture of lines including the Fibonacci 38.2% one-week, the Pivot Point one-day Support 2, the SMA 5-one-day, the Fibonacci 38.2% one-month, and the SMA 100-1h.
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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