Resistance is now observed in the range of 27,350 – 27,400 levels. Trading consistently above 27,450 levels would lead towards the strong resistance at 27,900 levels, and then finally towards the major resistance at 28,200 levels.
MCX Gold Oct as seen in the weekly chart above has opened the week at 27,431 levels and during this week it made a high of 27,480 levels. As expected during this week prices corrected sharply and made a 12 week’s low of 26,790 levels. In the week prices closed below the previous week closing of 27,378 levels and as well as below the strong support levels of 27,000 levels and finally closed 1.75% lower at 26,898 levels. Technically, as per the candlestick pattern prices have formed “Bearish candlestick pattern” indicating negative trend for the coming trading sessions.
For the next week we expect gold prices to find support in the range of 26,400 – 26,350 levels. Trading consistently below 26,350 levels would lead towards the strong support at 26,000 levels and then finally towards the major support at 25,600 levels.
Resistance is now observed in the range of 27,350 – 27,400 levels. Trading consistently above 27,450 levels would lead towards the strong resistance at 27,900 levels, and then finally towards the major resistance at 28,200 levels.
MCX / Spot Gold Trading levels for the week
Trend: Down
S1 – 26,400 / $ 1,208 R1 - 27,400 / $ 1,253
S2 - 26,000 / $ 1,190 R2 - 27,900 / $ 1,276
Weekly Recommendation: Sell MCX Gold October between 27350 – 27400, SL- 27900, Target – 26400 / 26350