Gold Resistance At 27600-27700 Range, Down
CommodityOnline | Oct 27, 2014 04:58AM ET
Trading consistently above 27,700 levels would lead towards the strong resistance at 28,100 levels, and then finally towards the major resistance at 28,400 levels.
MCX Gold Dec. as seen in the weekly chart above has opened the week at 27,219 levels and in the starting of the week prices rallied sharply and made a high of 27,640 levels. In the mid of the week prices could not able to sustain near to the resistance zone of 27,650 – 27,700 levels and corrected sharply toward 27,090 levels. In this week prices closed below the previous week’s closing of 27,256 levels and finally closed 0.29% lower at 27,176 levels. Technically, as per the candlestick pattern prices have formed “Inverted Hammer 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 26,800 – 26,700 levels. Trading consistently below 26,700 levels would lead towards the strong support at 26,300 levels and then finally towards the major support at 25,800 levels.
Resistance is now observed in the range of 27,600 – 27,700 levels. Trading consistently above 27,700 levels would lead towards the strong resistance at 28,100 levels, and then finally towards the major resistance at 28,400 levels.
MCX / Spot Gold Trading levels for the week
Trend: Down
S1 – 26,700 / $ 1,208 R1 - 27,700 / $ 1,253
S2 - 26,200 / $ 1,186 R2 - 28,100 / $ 1,272
Weekly Recommendation: Sell MCX Gold December between 27600 – 27700, SL- 28100, Target – 26700 / 26600
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