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:
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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