Gold Price Analysis: $1,590 critical to recovery after first US coronavirus-related death
|Margin calls that were the result of the stock market crash have reportedly been behind the massive correction in gold prices. However, weak Chinese PMIs and the first coronavirus-related death in the US may trigger further risk aversion. How is gold positioned ahead of a busy week?
The Technical Confluences Indicator is showing that $1,590 is a critical level. It is the convergence of the Fibonacci 23.6% one-month, the Bollinger Band 4h-Lower, and the previous 4h-high.
Crossing that line opens the door to further gains, with softer resistance awaiting at $1,593, where the BB one-day Middle and the Fibonacci 23.6% one-week.
Support awaits at $1,576, which is where the previous 4h-low and the Fibonacci 38.2% one-month meet.
It is backed up by the $1,572, which is where the 50-day Simple Moving Average 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.