Gold Price Analysis: Holding onto $1,493 critical to recovery in another corona-clouded week

Yohay Elam FXStreet

Gold has recovered after the "sell-everything" mode in global markets battered by the coronavirus outbreak. The precious metal is a safe-haven asset and may have room to rise. What are the technical levels to watch on XAU/USD?

The Technical Confluences Indicator is showing that gold has support at $1,493, which is the convergence of the Fibonacci 38.2% one-day, the Fibonacci 38.2% one-week 38.2% one-week, and the Bollinger Band 1h-Middle.

Further support awaits at $1,487, which is the meeting point of the Simple Moving Average 10-4h and the SMA 5-1h.

Resistance awaits at $1,500, which is the confluence of the SMA 5-one-day, the previous 4h-high, and the Fibonacci 23.6% one-day.

The next cap is $1,505, where the 200-day SMA meets the price.

The upside target is $1,516, where the BB 1h-Upper converges with the previous daily 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

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.

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