MCX Gold April as seen in the weekly chart above has opened the week at 30,560 levels and during this week the open and high levels was almost same (high = 30,566 levels) and price corrected sharply 2.79% lower from these levels. At the same time prices touched the low of 29,696 levels and finally closed at 29,742 levels. As per the candlestick pattern during this week prices has formed almost “Bearish engulfing pattern” which is the clue for bearishness. In the week prices had breached the previous week’s low of 29,956 levels but could not able to breach the high of 30,737 levels of the same week.
For the next week we expect gold prices to find support in the range of 29,500 – 29,300 levels. Trading consistently below 29,300 levels would lead towards the strong support at 28,900 levels and then finally towards the major support at 28,500 levels.
Resistance is now observed in the range of 30,700-30,850 levels. Trading consistently above 30,850 levels would lead towards the strong resistance at 31,000 levels, and then finally towards the Major resistance at 31,500 levels.
MCX / Spot Gold Trading levels for the week
Trend: Down
S1 – 29,300 / $ 1,310 R1 - 30,300 / $ 1,360
S2 - 28,800 / $ 1,295 R2 - 30,800 / $ 1,480
Weekly Recommendation: Sell MCX Gold April between 30,200 – 30,350, SL- 30,800, Target – 29,300 / 29,000