Gold Price Analysis: Strong resistance at $1,689 critical to extending the bullish rally – Confluence Detector
Fears that the coronavirus outbreak is spreading in the US – that made only 500 tests – is weighing on markets and sending gold prices higher. Where next for the precious metal?
The Technical Confluences Indicator is showing that $1,675 is the first hurdle awaiting the yellow metal. It is the convergence of the previous daily high and the Bollinger Band one-day Upper.
Looking up, the target is $1,689, which is the meeting point of the Pivot Point one-day Resistance 1 and the previous monthly high. From there, $1,800 is eyed.
Support awaits at $1,665, which is the confluence of the Simple Moving Average 5-4h and the Fibonacci 23.6% one-day.
IT is followed by $1,663, where the SMA 100-15m and the PP one-month Resistance 1 converge.
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