The MCX Gold price recovered from 17-month lows near the Rs.25200 leve,l to rally and close near Rs.27500 level on a big short-covering spree last week. The price closed positively for the week, indicating that further highs could be possible in the short-term. However, the medium-term trend still looks bearish below immediate resistance near Rs.27300 level. As such, rallies close to this level could be used as selling opportunities.
The 14-period RSI is well below the resistance line near the 50 mark, making lower tops and lower bottoms indicating bearishness for the price.
This week, unless Rs.27400-27600 level is not taken off on the upside, prices could trade lower and move towards the immediate support of the Rs.26060 level. Selling on rise is advisable for the short term.