Gold Price Analysis: Where XAU/USD can go to once it exits swamp of technical lines – Confluence Detector

The price of gold has been somewhat limited to a narrow range just above $1,800. There are several technical lines explaining why XAU/USD stuck, but also bullish targets for the precious metal, once it loses its chains. 

The Technical Confluences Indicator is showing that gold is mired between $1,804 and $1,806, which is a dense cluster including the Simple Moving Average 200-15m, the SMA 50-1h, the Bollinger Band 1h-Lower, the Fibonacci 23.6% one-day, the BB 15min-Lower, the BB 4h-Middle, the Fibonacci 23.6% one-week, and more.

Initial resistance awaits at $1,818, which is the meeting point of the Pivot Point one-day Resistance 1 and the previous weekly high. 

The upside target is $1,821, which is the convergence of the PP one-month R1 and the PP one-week R1.

Looking down, support is at $1,795, which is the confluence of the PP one-day Support 1, the SMA 200-1h, and the BB 4h-Lower. 

The next cushion is at $1,786, the previous monthly 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