MCX Gold June as seen in the weekly chart above has opened the week at 28,050 levels and during this week prices made a high of 28,299 levels. But this week prices were not able to sustain on higher levels and prices fell sharply making this contract new low of 27,100 levels and finally closed 2.63 % lower at 27,349 levels which is trading near 10 month low. In this week prices have breached this contract lows and trading below it which is the indication of southward trend for coming trading sessions.
For the next week we expect gold prices to find support in the range of 27,100 – 27,000 levels. Trading consistently below 27,000 levels would lead towards the strong support at 26,800 levels and then finally towards the major support at 26,250 levels.
Resistance is now observed in the range of 27,700-27,800 levels. Trading consistently above 27,800 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 – 27,000 / $ 1,275 R1 - 27,800 / $ 1,310
S2 - 26,800 / $ 1,260 R2 - 28,100 / $ 1,330
Weekly Recommendation: Sell MCX Gold June between 27,700 – 27,800, SL- 28,150, Target – 26,800 / 26,700