Gold traded within a tight range of 450 rupees and then settled with 10 rupees gain at 29564 on weekly basis. Gold hovering near 50 weeks SMA and getting strong support near 28300-28200 zones. 10 weeks SMA is below 20 weeks SMA but 20 weeks SMA is still above 50 weeks SMA hinting weaker trend over short term picture and bullish trend on longer term time frame. Stochastic hitting oversold territory and prices are witnessing jump from support zones may bring a short term recovery in this commodity. MACD has given bearish cross under signal line and now hovering near zero line that may result in sharp decline in coming days. Immediate support is now placed at 28250 any sustained move below this level would open the doors for a retest to 27600 and 26500 zones. Resistance is now seen near weekly high at 28700 any sustained move above that level would help this commodity to jump towards 29300-29600 zones. Key resistance would remain at 29640 and any sustained move above that level would bring more charm in this commodity and then bullish move may extend towards 29900-30300 zones. In general stability below 29640 remains bearish for this commodity and any sustained move below 28200 would result in more weakness for potential targets of 27600-26400 zones.
Trading range for the week is expected among the key support at 28280 and resistance at 33000.
* This week selling gold on jumps around 29300-29400 with stop loss above 29650 for targeting 28700-28300 and more down side might be appropriate.
* In alternative scenario selling can be taken below 28200 with stop loss above 28550 for targeting 27900-27600 and more down side might be appropriate in short term.
* In alternative scenario buying can be taken above 29643 with stop loss below 29400 for targeting 29800-30100-30300 and more upside.
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