Gold has closed the last full week of a turbulent March around $1,626. How is it positioned as further coronavirus news is set to rock markets in a new week?
The Technical Confluences Indicator is showing that significant support awaits at $1,625, which is the convergence of the Simple Moving Average 10-4h, the SMA 100-15m, the Bollinger Band 15min-Middle, the SMA 5-1h, and the Fibonacci 61.8% one-day.
The next cushion is at $1,619, which is the meeting point of the Fibonacci 23.6% one-day and the BB 1h-Lower.
Further down, $1,607 is the strongest support line. It is the confluence of the Fibonacci 23.6% one-week and the Pivot Point one-week one-day Support 2.
Looking up, $1,635 is the key resistance line. It is a juncture of lines including the BB 4h-Upper, the Fibonacci 61.8% one-week, the PP one-day R1.
The upside target is $1,645, which is where the previous week's high hits the price.
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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