Gold remained under pressure on domestic and international front and settled at 26496 with decline of 402 rupees. Metal has been staying below 10 weeks SMA that has recently crossed above 20 weeks SMA but now 10 weeks SMA is moving downwards. 20 weeks SMA is also staying below 50 weeks SMA and has a down slop indicates weakness on longer term picture. MACD has been staying below line zero and now crossing under signal line that indicates strengthening bearish momentum. Stochastic has also reversed fro over bought territory and has entered below 30 levels indicates power full bears. Price objective for bears has now placed at 26500. Areas of 26500 looks good for bulls and if they fails to protect this level then we will see extension in current bearish attempt and then retest to 26000-25500 looks imminent. Immediate resistance is now placed at 26850 any sustained move above that level would bring more charm and then we will see a recovery that will take this metal towards 27100 zones. Areas of 27120 will remain important to watch on WOW basis and any sustained move above that level would bring pause in current down trend and then we will see a recovery towards 27400 zones. Areas of 27500 will remain strong hurdle and any sustained move above that level would bring some confidence to gold bulls and then we will see a recovery that would help this metal to jump towards 27800-28000 zones. In other words stability below 27120 would keep this metal under control of bears and failure of 26450 zones would result in a decline towards 26000-25600 zones.
Gold trading range for the week is expected among the key support at 26450 and resistance at 27120.
Â· This week again selling gold on jumps around 26800-900 with stop loss above 27120 for targeting 26450-26100 and more down side.
Â· In alternative scenario selling can be taken below 26450 with stop loss above 26600 for targeting 26250-26050-25800 and more down side.
Â· Buying above 27120 with stop loss below 26900 for targeting 27400-27700 and more upside might be appropriate.
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