MCX Gold Medium Term Bearish: Kotak

Published 09/10/2013, 02:01 AM
Updated 05/14/2017, 06:45 AM

MCX Gold price is in a major uptrend indicated by higher tops and higher bottoms on the daily chart as shown above. However, recently the price has formed double top pattern. A double top is a reversal pattern created by a push higher in price followed by a correction, then another move higher into the same area as the prior high. The pattern is complete once price breaks the correction low.
MCX Gold'
The price has broken the correction low and the target of the pattern is calculated by measuring the height of the pattern from the peak to the trough (correction).

Also, the 14-period RSI has broken the support line S and is currently pointing lower indicating bearish momentum for the price.

Hence it is advisable to sell gold in for the immediate target of Rs.30250 level in the medium term.

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