Gold Price Analysis: First hurdle crossed, next bullish levels in sight – Confluence Detector

Gold has recaptured the round $1,800 level and also topped a critical hurdle mentioned earlier in the day. The road is now open for XAU.USD to continue to higher ground. 

The Technical Confluences Indicator is showing that the next target is at $1,807, which is the convergence of the Fibonacci 61.8% one-day, the Bollinger Band 1h-Upper, the Fibonacci 23.6% one-week, and more. 

Further above, the upside target is $1,821, which is the meeting point of the Pivot Point one-month Resistance 1, the BB one-day Upper, and the PP one-week R1.

Support awaits around $1,800, an area which includes the Simple Moving Average 5-15m, the Fibonacci 38.2% one-day, the BB 15min-Upper, the Fibonacci 38.2% one-week, the BB 15min-Middle, and more.

Further down, the next cushion is $1,786, which is the confluence of the SMA 100-4h, the Fibonacci 61.8% one-week, and the previous monthly high.

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