MCX GOLD MEDIUM TERM OUTLOOK

As per the below MCX Gold weekly chart, we have witnessed lower volumes on higher highs of prices since Nov 2011.

Its indicating carry forward of long positions should be too risky in near terms.

Another indicator likes RSI and MACD also in Bearish Divergence suggesting weak strength of price movement.

Probability No.1

Step 1: Gold prices may be trade range bound from 32600-32950 levels to 31300-30500 levels in next few months.

Step 2: We are suggesting trader can trade within this range until unless breakdown not happens.

Step 3: wait for breakdown with higher volumes and confirmation.

Step 4: further recommendation will be updating time to time.

Probability No.2

Step 1: Gold prices may be test resistance line of price channel and cool off from higher levels.

Step 2: Sell at 32750-32950 levels and keep stop loss above 34000 for the targets of 30500-29200 levels, CMP 31850

....to be continued

Regards 
Pradeep Karnani
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www.trueinfotec.in
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