Gold prices have turned higher after China reported a leap in coronavirus cases and after a methodology change. Investors are running to safety and the precious metal is eyeing higher levels.
The Technical Confluences Indicator is showing that Gold prices face resistance at around $1,576, which is a cluster of lines including the Fibonacci 38.2% one-month, the Fibonacci 161.8% one-day, the Bollinger Band 15min-Upper, the BB 4h-Upper, and the Fibonacci 61.8% one-week.
Further above, the yellow metal has room to run until $1,594, which is where the Pivot Point one-week Resistance 1 and the previous weekly high converge.
Support awaits at $1,571, which is the confluence of the Pivot Point one-day Resistance 1 and the previous daily higher.
The next cushion is also close. At $1,567, XAU/USD enjoys the convergence of the Fibonacci 61.8% one-day, the Simple Moving Average 50-4h, the BB one-day Middle, the SMA 200-1h, the SMA 10-4h, and the SMA 100-15m.
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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