Gold Price Analysis: XAU/USD remains vulnerable, two key supports to watch – Confluence Detector
|Gold continues to feel the pull of gravity after facing rejection at $1818 for two consecutive days. Despite the uncertainty about the coronavirus vaccine development and continued escalation in the infections globally, gold remains vulnerable amid thin trading conditions on Black Friday/
Expectations that the coronavirus vaccines will prompt a swifter global economic recovery in 2021 continue to bode ill for the anti-risk gold. Let’s see how gold is positioned on the charts.
Gold: Key resistances and supports
The Technical Confluences Indicator shows that the XAU/USD pair is likely to find an immediate reprieve at $1805, which is the confluence of the Pivot Point one-week S3 and the previous day low.
The next critical cushion awaits at $1800, where the SMA200 one-day coincides with the Bollinger Band one-day Lower.
The bears will then challenge the $1796 cap, the intersection of the Fibonacci 161.8% one-day and Bollinger Band four-hour Lower.
Further south, the level to beat for the bears is the Pivot Point one-day S3 at $1789.
On the flip side, strong resistance awaits at $1811, which is the convergence of the Fibonacci 61.8% one-day, SMA10 four-hour and SMA50 one-hour.
The $1818 barrier (Pivot Point one-month S2) will guard the further upside. Acceptance above the latter is critical to reviving the recovery momentum towards $1824, the meeting point of the Pivot Point one-day R2 and SMA100 one-hour.
Here is how it looks on the tool
About Confluence Detector
The TCI (Technical Confluences Indicator) 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.
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