Technically, February gold futures prices closed nearer the session low again Wednesday as bulls are fading again. The gold market bears have the solid overall technical advantage. The gold bulls next upside near-term price breakout objective is to produce a close above solid technical resistance at this weeks high of $1,247.70. Bears next near-term downside breakout price objective is closing prices below solid technical support at $1,200.00. First resistance is seen at Wednesdays high of $1,231.80 and then at $1,240.00. First support is seen at Wednesdays low of $1,217.70 and then at this weeks low of $1,212.60.
Gold February contract on MCX inched 38 rupees lower to settle at 28796. Gold traded in narrow range and closed near 28800. Today price objective for gold bulls would be 28900 any sustained move above that level would bring more charm in this commodity and then attempt towards 29000-29050 cant be ruled out. Further stability above 29060 would take it to more upside and then rally towards 29200 cant be ruled out. Key resistance would remain at 29270. Support is now seen near 28671 any stability below this level would take it towards 28550-28400 zones. Key support would remain at 28280 and any closing below that level may bring more weakness in this commodity.
Technically gold is still looking bearish and penetration of 200 days (28200) SMA may bring sharp declines.
Trading range for the day is expected among the key support at 28280 and resistance at 35100.
Today buying gold above 28880 with stop loss below 28790 for targeting 28960-29050 and more upside might be appropriate.
Selling can be taken below 28670 with stop loss above 28800 for targeting 28570-500 and more down side might be appropriate.
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