Gold has failed in its attempt to move higher on Tuesday but is trading well above the $1,700 level. Where next for the precious metal?
The Technical Confluences Indicator is showing that gold has substantial support at $1,722, which is the convergence of the previous daily low and the Bollinger Band one-day Middle.
Resistance awaits at $1,730, yet it is somewhat weaker. That point is a juncture of lines including the Simple Moving Average 100-4h, the Fibonacci 38.2% one-month, the Bollinger Band 15min-Upper, and the previous 4h-high.
Looking up, the upside target is $1,743, which is the confluence of the BB 1h-Upper and the Fibonacci 23.6% one-month.
Below $1,722, the next cushion is $1,707, where the Fibonacci 61.8% one-month and the PP one-day S2 converge.
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.
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