MCX Gold May Trade Positive; Target 26400 Level
CommodityOnline | Jul 01, 2013 07:35AM ET
MCX Gold price fell sharply last week to a 2-year low at Rs.24830 level, only to recover later in the period to close above Rs.25600 level. Despite the recovery, the price ended the week lower by almost 5%. The sharp reversal and positive close last Friday suggests that the short-covering move to the upside might continue in the current week. As such, a test of near most horizontal resistance at Rs.26400 level might be possible.
A positive divergence can be seen on the chart, wherein the price has formed a new recent low, but the 14-period RSI has managed to sustain well above the previous low. This indicates a possible reversal in the price for the short-term.
For the current week a fall towards Rs.25400 level should be taken as an opportunity to buy the commodity for the immediate target of Rs.26400 on the upside.
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