Gold Price Analysis: Strong support opens door to fresh gains – Confluence Detector
Gold has been holding onto most of its gains from the previous week and is looking for the next move as a busy week kicks off. How is the precious metal positioned on the chart?
The Technical Confluences Indicator is showing that XAU/USD has support around $1,772, which is the convergence of the Simple Moving Average 10-1h, the Bollinger Band 15min-Middle, the SMA 5-1h, and the Pivot Point one-month Resistance 1.
Further down, gold sellers may find it hard to push the price below $1,765, which is a dense cluster including the previous monthly high, the Fibonacci 38.2% one-week, the SMA 5-one-day, the SMA 200-15m, and more.
Looking up, some resistance awaits at $1,779, which is the meeting point of the previous weekly high, the PP one-day R1, and the BB 1h-Upper.
Thew upside target is $1,786, where the Pivot Point one-week R1 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.
