Gold Oct In Resistance At 28000-28050 Levels
CommodityOnline | Aug 25, 2014 05:36AM ET
gold prices to find support in the range of 27,200 – 27,250 levels. Trading consistently below 27,200 levels would lead towards the strong support at 26,800 levels and then finally towards the major support at 26,400 levels.
MCX Gold Oct as seen in the weekly chart above has opened the week at 28,505 levels and during this week the open and high levels were the same. As expected during the week prices have breached the previous 4 week’s low and corrected sharply towards the weekly low of 27,704 levels. In the week prices breached the strong support levels of 28,000 levels and finally closed 2.80% lower at 27,704 levels. Technically, as per the candlestick pattern prices have formed “Big Bearish candlestick pattern” indicating down trend for the coming trading sessions.
For the next week we expect gold prices to find support in the range of 27,200 – 27,250 levels. Trading consistently below 27,200 levels would lead towards the strong support at 26,800 levels and then finally towards the major support at 26,400 levels.
Resistance is now observed in the range of 28,000 – 28,050 levels. Trading consistently above 28,050 levels would lead towards the strong resistance at 28,450 levels, and then finally towards the major resistance at 28,900 levels.
MCX / Spot Gold Trading levels for the week
Trend: Down
S1 – 27,200 / $ 1,255 R1 - 28,000 / $ 1,290
S2 - 26,800 / $ 1,230 R2 - 28,450 / $ 1,310
Weekly Recommendation: Sell MCX Gold October between 28000 – 28050, SL- 28450, Target – 27200 / 27100
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