Gold April contract on MCX traded with negative note and settled with a decline of 113 rupees at 28754. Gold closed well below 10-20 and 50 weeks SMA on weekly continuation chart that is keeping this commodity in bearish mood. MACD is hovering near zero line with a bearish cross under signal line keeping trend in sideways mode on longer term picture. Stochastic is also failing to climb above 40 levels and now getting ready for a bearish cross on weekly continuation chart. Immediate support is now seen near weekly low at 28600 and then at 28500 any sustained move below 28600 may take it to retest 28500 zones but key support would remain at 28500 and any sustained move below that level would bring a retest to 28300-28000 zones. Areas of 28300 would remain key support on closing basis and any closing below those levels would trigger more weakness and then bearish move may extend towards 27600-27400 zones. Resistance is now seen near 29100 any sustained move above that level would bring a retest to 29250-29460 zones that and will try to fill the gap left during expiry. Areas of 29450 would remain crucial to watch and sustained move above those levels would bring more charm in this counter and then we may see a retest to 29800-30300 zones.
Trading range for the week is expected among the key support at 28280 and resistance at 33000.
Â· Selling gold below 28500 with stop loss above 28650 for targeting 28300-28100 and more down side might be appropriate.
Â· In another scenario buying can be taken above 29100 with stop loss below 28900 for targeting 29250-29400-29600-800 and more upside might be appropriate.
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