Gold traded within the territory of previous week and closed at 29432 with gain of 478 rupees. Commodity has broken under 20 weeks SMA and 10 weeks SMA has also given a bearish cross under 20 weeks SMA and now prices are hovering near 50 weeks SMA where buyers are getting good support. MACD is producing a bearish signal with cross under signal line. Stochastic testing oversold territory and now getting ready for a bullish cross that may help prices to witness a temporary rebound. Immediate support is now seen near 28840 and then at 28719 any sustained move below 28719 would result in more weakness and then a primary retest to 28400-28300 zones cant be completely ruled out. Resistance is now seen near 29640 any sustained move above 29640 would result in more bullishness and then retest to 30000-304000 zones cant be completely ruled out. Technically metal is still looking stable on longer term picture but any price stability below 50 weeks SMA that is around 29000 would result in a sharp decline in this commodity.
Trading range for the week is expected among the key support at 28900 and resistance at 29700.
* Selling gold on jumps around 29400-29500 with stop loss above 29640 (daily closing basis) for targeting 28300 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.
* In other possible scenario selling below 28700 with stop loss above 28900 for targeting 28500-28300 and more down side might be appropriate.
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