Gold has suffered a setback after surging to the highest in 7.5 years. Can it recover? There are a few hurdles on the way up.
The Technical Confluences Indicator is showing that XAU/USD first needs to surpass $1,737, which is the convergence of the Fibonacci 23.6% one-week, the Simple Moving Average 5-1h, and the Bollinger Band 15min-Middle.
It is followed by $1,742, which is the meeting point of the Bollinger Band one-day Upper and the Fibonacci 38.2% one-day.
Further up, the strongest resistance is at $1,747, where the SMA 10-4h and the previous monthly high converge.
Strong support awaits at $1,728, which is the confluence of the Fibonacci 38.2% one-week and the previous daily low.
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.
Learn more about Technical Confluence