Comments
The gold futures contract on the Multi Commodity Exchange (MCX) has been trading in a sideways range over the last three weeks. Interestingly, this range is becoming very narrow every week signalling that the contract is gearing up for sharp moves in the coming days.
Key support is at ₹27,500 for 10 gm. The outlook will turn bearish only if the contract declines below this level.
But the price action since July 10 on the daily candle stick chart suggests that the probability for this fall is less at the moment.
So traders who have taken long position can continue to hold their positions.
Stop-loss can be retained at ₹27,350 for the revised target of ₹28,800. Traders who have not taken any position can consider going long in MCX-gold futures contract at current levels with the same stop-loss.
Immediate resistance for the contract is at ₹28,200.
A strong daily close above this level will give an initial signal that a fresh rally is emerging .
In this scenario, traders can consider accumulating more long position.
The contract can trend upwards to ₹29,000 if it breaches its hurdle at ₹28,200.
As mentioned above, the outlook will turn bearish only if MCX-gold records a strong close below ₹27,500.
The ensuing target on such a fall will be ₹27,200.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.