Range Markets

Gold has benefitted from the Federal Reserve’s ongoing support to the economy, as Chairman Jerome Powell promised to act “forcefully. aggressively and proactively.” How is the precious metal positioned on the charts?

The Technical Confluences Indicator is showing that XAU/USD has significant support at $1,729, which is the convergence of the Bollinger Band 15min-Lower, the Fibonacci 38.2% one-month, the Simple Moving Average 5-4h, the Pivot Point one-week Resistance 1, and the SMA 5-15m.

The next cushion is also considerable. At $1,716, gold may find support at a cluster including the 10-day SMA, the SMA 200-4h, and the Fibonacci 61.8% one-week.

Looking up, initial, weak resistance awaits at $1,733, which is the confluence of the BB 15min-Middle, the SMA 5-1h, and the Fibonacci 23.6% one-day.

The upside target is $1,743, which is the meeting point of the Fibonacci 23.6% one-month and the Bollinger Band 1h-Upper.

All in all, the path of least resistance remains to the upside.

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

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