Gold has been trading in a narrow range but could ready to break to higher ground as it has strong support. Volatility is set to increase on as options and futures are set to expire on Wall Street on “quadruple witching Friday.”

The Technical Confluences Indicator is showing that XAU/USD has significant support at $1,725, which is a dense cluster of lines including the Simple Moving Average 50-15m, the SMA 100-1h, the SMA 50-1h, the SMA 200-15m, the Fibonacci 38.2% one-day, the SMA 5-1h, and the Bollinger Band 4h-Middle.

Close by, at $1,722, the bullion may benefit from another cushion that includes the SMA 200-4h, the Bollinger Band 1h-Lower, BB 4h-Lower, the SMA 100-4h, and the BB one-day Middle.

Looking up, weak resistance awaits at $1,730, which is the convergence of the Fibonacci 38.2% one-month and the Fibonacci 23.6% one-week.

The upside target is $1,743, which is the confluence of the previous weekly high and the Fibonacci 23.6% one-month.

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