Technically, December gold futures prices closed nearer the session low Thursday and hit afresh three-week low. Prices also scored a bearish outside day down on the daily bar chart. The gold market bears today reclaimed the near-term technical advantage. The gold bulls next upside near-term price breakout objective is to produce a close above solid technical resistance at the October high of $1,361.80. Bears next near-term downside breakout price objective is closing prices below solid technical support at the October low of $1,251.00. First resistance is seen at Thursdays high of $1,326.00 and then at $1,330.00. First support is seen at Thursdays low of $1,296.00 and then at $1,291.50.
Gold December contract on MCX inched 115 rupees lower to settle at 29920. Today support would be 29700 and then at 29600 any failure below 29600 would open the doors for 29300 zones. Resistance is now seen near 30100 and then at 30270 any sustained move above 30270 would bring 30400 and more upside.
Buying gold on dips around 29820-29760 with stop loss below 29600 for targeting 30100-30200 and more upside.
Selling below 29600 with stop loss above 29750 for targeting 29500-29400-29300 and more down side might be appropriate.
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