On The Charts. MCX- Gold (₹30,557)

Three weeks of a narrow consolidation MCX-gold futures contract ended last week . It rose 1.7 per cent in the past week, breaching the key psychological resistance level of ₹30,000 per 10 kg. Further rise to test the next resistances at ₹30,900 and ₹31,200 is likely this week. Inability to break above ₹31,200 may trigger a corrective fall to ₹30,500 or ₹30,300. On the other hand, if the contract breaches ₹31,200 decisively, a rally to ₹32,000 and ₹32,300 is possible . Immediate support is at ₹30,235. Subsequent strong supports are at ₹30,000 and ₹29,700. The view will turn negative only if it declines below ₹29,700 decisively. Such a fall will increase the likelihood of testing ₹29,000 or even lower levels. However, price action on the charts suggests that such a sharp fall is less likely. Short-term traders can go long on dips near ₹30,300. Stop-loss can be placed at ₹29,750 for the target of ₹31,150. Accumulate longs near ₹29,900. Revise the stop-loss higher to ₹30,650 as soon as the contract moves higher to ₹31,000.