Gold looking for a reversal

Mr. Tejas Anil Shigrekar, Commodities and Currencies Senior Technical Analyst, Angel One Ltd

The short-term bearish trend is projected to revert into neutral or bullish territory. We need to keep a close eye on important support levels of 59500. As long as the price of MCX GOLD continues to be significantly below 59770, short trades could be advantageous.

On a Technical basis, currently, the RSI (14) is below 70, indicating that it is in an overbought zone, with negative divergence. Prices are trading above their 50-day exponential moving average (EMA). However, when we look at the longer timeframe on the chart and use the Fibonacci retracement tool, prices hold support near the 78.60% fib ratio and likely form a double bottom pattern, indicating that the prices will revert in the short run. Keeping this support level in mind, trend traders should not hesitate to buy gold at this level.

BUY MCX GOLD AT 59800 SL 59500 TGT 60450- 60740