Gold futures contract on MCX surged over 2 per cent last month. However, the 200-day moving average at ₹29,786 halted the rally and the contract has reversed sharply lower from there. The sharp 2 per cent fall last week has wiped almost all the gains made last month, suggesting that the contract is on a corrective fall. Next key supports are at ₹28,750 and ₹28,500 which are likely to be tested in the coming days. The presence of the 21-week moving average and a trendline in the ₹28,750-₹28,500 region makes this zone a strong support. So a break below ₹28,500 looks less probable. A subsequent reversal from ₹28,500 can take the contract higher to ₹29,500 and ₹29,750 levels once again. Traders with a medium-term perspective can buy on dips near ₹28,750. Accumulate longs near ₹28,500. Keep the stop-loss at ₹28,250 for the target of ₹29,700. The contract will need a strong break and a decisive close above the 200-day moving average resistance to gain fresh momentum. In such a scenario, the contract can witness a fresh rally to ₹30,500 or ₹30,700 thereafter.
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.