Gold June Trending Down, Support 27800 – 27700
CommodityOnline | May 19, 2014 06:40AM ET
MCX Gold June as seen in the weekly chart above has opened the week at 28,474 levels and during this week prices made a high of 28,798 levels. During this week prices could not able sustain on higher levels and in end of the week prices corrected back towards the low of 28,014 levels and finally closed 1.53 % lower at 28,089 levels. As per the candlestick pattern prices has formed “Bearish candlestick pattern” which is the sign of pessimism. In the week prices have breached the last 7 week’s low and trading below it which is the indication of southward trend for coming trading sessions.
For the next week we expect gold prices to find support in the range of 27,800 – 27,700 levels. Trading consistently below 27,700 levels would lead towards the strong support at 27,200 levels and then finally towards the major support at 26,800 levels.
Resistance is now observed in the range of 28,400-28,500 levels. Trading consistently above 28,500 levels would lead towards the strong resistance at 28,900 levels, and then finally towards the major resistance at 29,300 levels.
MCX / Spot Gold Trading levels for the week
Trend: Down
S1 – 27,700 / $ 1,270 R1 - 28,500 / $ 1,310
S2 - 27,200 / $ 1,250 R2 - 28,900 / $ 1,330
Weekly Recommendation: Sell MCX Gold June between 28,400 – 28,500, SL- 28,900, Target – 27,800 / 27,700
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