After surging to $1,742 – the highest in seven years – gold prices suffered a downside correction and ended the post-Easter week close to where it started it. How is the precious metal positioned now?
The Technical Confluences Indicator is showing that XAU/USD has robust support at $1,682, which is the convergence of the Simple Moving Average 10-one-day, the previous 4h-low, and the Bollinger Band 4h-Lower.
It is followed by $1,680, which is the previous daily low.
The initial upside target is $1,688, where the SMA 10-1h, the Fibonacci 23.6% one-day, and the SMA 50-15m meet up.
The next target is $1,695, which is the confluence of the Fibonacci 38.2% one-day and the BB 1h-Middle.
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.