Gold Price Analysis: XAU bulls gather pace for further upside – Confluence Detector
|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.
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
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.