Gold Price Analysis: Correction to $1,833 on the cards before next bull run – Confluence Detector

Gold has been consolidating its meteoric rise and trades below the fresh near the nine-year high. As long as the $1,861 cap mentioned earlier holds, XAU/USD will find it hard to advance. The precious metal may follow the path of least resistance and fall to lower support before reemerging. Here are the levels to watch on gold.  

The Technical Confluences Indicator is showing that gold has some support $1,852, which is the convergence of the Pivot Point one'day Resistance 1 and the Bollinger Band one-hour Middle. 

The next cushion is at $1,844, which is the meeting point of the previous daily high and the PP one-week R3. 

Further down, strong support awaits at $1,833, which is a juncture including the Fibonacci 38.2% one-day, the Simple Moving Average 200-15m, the BB one-day Upper, and the SMA 50-1h. 

Looking up, $1,861 is the meeting point of the previous 4h-high, the PP one-month R2, the PP one-day R2, and more. 

If XAU/USD breaks this tough resistance, the upside target is $1,888, which is where the Pivot Point one-day R3 hits the price.

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