Gold Price Analysis: Bullish spring-board opens door to higher targets – Confluence Detector


Gold has had a robust second quarter which is now drawing to an end. Can it eke out further gains? Technical levels show support is stronger than resistance. 

The Technical Confluences Indicator is showing that XAU/USD has strong support at $1,765, which is the convergence of the previous 4h-low, the previous monthly high, and the Fibonacci 38.2% one-week. 

The next support line awaits at $1,756, which is the meeting point of the Pivot Point one-day Support 3, the Fibonacci 61.8% one-week, and the Simple Moving Average 200-1h.

Initial resistance is at $1,771, which is the confluence of the SMA 10-1h, the Fibonacci 23.6% one-week, the SMA 50-15m, the SMA 5-4h, and the SMA 10-4h. 

The upside target is $1,786, which is where the PP one-day R3 and the PP one-week R1 converge. 

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.

Learn more about Technical Confluence

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.

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