Gold Price Analysis: A daily close above $1772 critical for a test of $1800 – Confluence detector
|Gold consolidates in a familiar range around $1770, despite a lift in the risk sentiment, underpinned by upbeat Chinese data. Will it break to fresh multi-year highs stepping into the third quarter of 2020?
The Technical Confluences Indicator suggests that the upside appears more compelling for the precious metal, in absence of healthy resistance levels stacked up en route the key $1800 level.
The bulls battle the immediate hurdle at $1772, which is the confluence of Bollinger Band one-hour Middle, Fibonacci 23.6% one-week and 10-SMA on 4-hour chart.
Next up, minor resistance at $1773.50 (previous high on the 4-hour chart and pivot point on one-month R1) will be put to test.
Alternatively, the sellers could aim for a $1768 support area, where the Bollinger Band four-hour Middle and 100-SMA on a one-hour intersect.
The strong support at $1766.50 is level to beat for the bears in the near-term. That level is the convergence of the previous month high, Fibonacci 38.2% one-week and the previous day low.
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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