Gold Prospects Look Uncertain, Bearish, Support 27250-27200
CommodityOnline | Jul 07, 2014 04:10AM ET
MCX Gold August opened the week at 27,632 levels and as expected during this week prices rallied sharply and made a high of 27,940 levels following with breached the high of last two week’s but could not able to sustain on resistance of 28,000 levels and corrected from those levels towards the low of 27,363 levels. The chart below shows MCX Golds' opening and closing levels
In the week prices have corrected 0.42% lower and finally closed at 27,557 levels. Technically as per the candlestick pattern prices have formed “Doji candlestick with bearish closing” indicating indecisiveness with bearish activities.
For the next week we expect gold prices to find support in the range of 27,250 – 27,200 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 26,500 levels.
Resistance is now observed in the range of 28,000 – 28,100 levels. Trading consistently above 28,100 levels would lead towards the strong resistance at 28,400 levels, and then finally towards the major resistance at 28,900 levels.
MCX / Spot Gold Trading levels for the week
Trend: Sideways Down
S1 – 27,200 / $ 1,300 R1 - 28,000 / $ 1,340
S2 - 26,800 / $ 1,280 R2 - 28,400 / $ 1,360
Weekly Recommendation: Sell MCX Gold August between 27,900 – 28,000, SL- 28,400, Target – 27,200 / 27,100
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