Gold has suffered a sell-off on Thursday, dipping below $1,700-and-evil-to-recapture-that-level. Does it have the room to recover? XAU/USD may be facing a difficult battle.
The Technical Confluences Indicator shows that the gold faces initial resistance at $1,707that is the convergence of Fibonacci 61.8% of one-month-and-the-Bollinger-Band-15-High.
In addition to the above, the precious metal is facing a hard cap at $1,721, which is a stage as well as the Simple moving Average, 50-1h, and the SMA, and the 200-15m, and the Fibonacci 61.8% for the week, and more.
Some support awaits at the $1 703which is the confluence of the Pivot Point, week 1 of the SMA, and the 5-1h and-the-BB-15-Middle.
Lower down, the lower support is waiting for you at the $1 694that is, in the case where the weekly low, and the 50-day SMA converge.
Here is what it looks like on the tool:
The proposed Detector finds exciting sales opportunities with a Technical Confluences. The TC is a tool to locate and report these price levels where there is a the congestion and the indicators moving averages, Fibonacci levels, Pivot Points, etc). Knowing where these points of congestion are located, it is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a number of “weight” to each indicator, and this “style” can influence adjacent price levels. These weightings mean that a price level without any indicator or moving average, but under the influence of two “heavily weighted” levels, accumulate more resistant than those of their neighbors. In these cases, the tool signals, and resistance in apparently empty places.
Learn more about the Technique of the Confluence