Gold Price Analysis: Has strong support and $1,718, and may resume its rise – Confluence Detector
Gold has been consolidating its gains after recovering from a dive below $1,700. Can it extend its gains on the last day of May?
The Technical Confluences Indicator is showing that XAU/USD is trading above a strong support line at $1,718, which is the convergence of the previous weekly low, the Bollinger Band one-day Middle, the Simple Moving Average 10-4h, and the BB 4h-Middle.
Further down, another cushion awaits at $1,705, which is the meeting point of the previous daily low and the Fibonacci 23.6% one-month.
Looking up, some resistance awaits at $1,729, which is the confluence of the SMA 50-4h, the Fibonacci 23.6% one-week, and the SMA 200-1h.
Gold's upside target is $1,740, where the Pivot Point one-day Resistance 2 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.
