MCX Gold June as seen in the weekly chart above has opened the week at 29,088 levels with gap down opening and during this week prices made a high of 29,141 levels and as expected price corrected sharply 4.01% lower from these levels. At the same time prices touched the low of 28,024 levels and finally closed at 28,123 levels. As per the candlestick pattern during this week prices has formed a big bearish candlestick which indicates further bearishness. In the week prices had breached the last 9 week’s low and finally closed below 28,200 levels.
For the next week we expect gold prices to find support in the range of 27,500 – 27,400 levels. Trading consistently below 27,400 levels would lead towards the strong support at 26,900 levels and then finally towards the major support at 26,500 levels.
Resistance is now observed in the range of 28,700-28,850 levels. Trading consistently above 28,850 levels would lead towards the strong resistance at 29,000 levels, and then finally towards the Major resistance at 29,500 levels.
MCX / Spot Gold Trading levels for the week
Trend: Down
S1 – 27,500 / $ 1,260 R1 - 29,000 / $ 1,330
S2 - 26,900 / $ 1,235 R2 - 29,500 / $ 1,360
Weekly Recommendation: Sell MCX Gold June between 28,600 – 28,650, SL- 29,000, Target – 27,500 / 27,300