Gold February contract on MCX inched 506 rupees down to settle at 28362.
Gold headed a low of 28335 yesterday and our long awaited level tested by this metal. Metal closed nearer key support of 28200 zones and below 200 days SMA on daily continuation chart. Today price objective for bulls would be 28500 and then 28800 any sustained move above 28800 may bring some charm back in this commodity and then it may witness a retest to 29100-29300 zones. Support is now seen near 28335 any sustained move below that level would bring 28200-28000 zones.
Technically gold is still looking bearish and penetration of 200 days SMA may bring sharp declines.
Trading range for the day is expected among the key support at 28200 and resistance at 29800.
Â· Today again selling gold on jumps around 28600-650 with stop loss above 28800 for targeting 28400-28200 and more down side might be appropriate in intraday and short term.
Â· In alternative scenario selling can be taken below 28300 with stop loss above 28420 for targeting 28230-140-28050 and more down side might be appropriate.
Â· In another possible scenario buying can be taken above 29000 with stop loss below 28830 for targeting 29100-29200 and more upside.
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