MCX Gold Could Extend Bear Rally Towards 26350 Levels
CommodityOnline | Jun 25, 2013 06:47AM ET
After forming a double bottom pattern formation on the daily chart, the MCX Gold price tested the lower band of downward sloping trend channel C-C1. Last week, the price was unable to go above the resistance line C. It formed a bearish engulfing pattern on the weekly chart to close the week down by 3%, indicating end of the recent up move.
The 14-period RSI is also broke its upward sloping trendline, and is now trading below 50 mark, suggesting bearishness in the price.
For the current week and rise towards previous peak at 27400, should be taken as an opportunity to sell the commodity for the immediate target of 26350 on the downside.
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