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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
