India: MCX gold can rally further
New Delhi-India (Apr 18) On Monday, the contract advanced around ₹200 to trade at ₹29,160. This rally has taken the contract above the key resistance at ₹29,000 and 50-day moving average. The daily price rate of change indicator is hovering in the positive territory implying buying interest.
Traders with a short-term horizon can consider buying the contract in declines with a stop-loss at ₹28,750. The contract can extend its up move and test the immediate resistance at ₹29,500 in the near term. Subsequently, the contract can test the significant medium-term resistance level at ₹30,000 in the coming weeks. An emphatic breakthrough of this level can strengthen the bullish momentum and take the contract higher to ₹30,500 and ₹31,000.
On the other hand, a conclusive fall below the key support level of ₹28,000 will alter the outlook bearish and drag the contract down to the next base level of ₹27,000.
On the global front, the spot gold price has been on a sideways movement in the broad range between $1,200 and $1,260 per ounce since early February.
Only a strong rally above the upper boundary at $1,260 will strengthen the bullish momentum and take the metal price higher to $1,280 and $1,300 in the near term.
But, a conclusive fall below the immediate support at $1,220 can pull the metal price down to $1,200. Next key supports are placed at $1,180 and $1,160.