MCX GOLD TIPS for 28 Aug. to 1 Sep. week 2017
Mcx gold future this week closed at 29162 with gain. This was third weekly gain for gold prices after previous 2 weeks small correction and consolidation. This week mcx gold future hit high near 29314 while low was at 28777. Total 500+ rupee weekly range and strong positive week for this precious metal on another follow up buying.
Mcx gold weekly chart price trend and momentum both are now bullish. Prices are now trading above all major medium term weekly averages and suggesting fresh rally in medium to longer terms for my upside given targets. on weekly chart, mcx gold 5 weeks average level is at 28955, below that 28800 is 50 weeks average levels support and 28725 is 20 weeks average levels last support zone. Weekly chart RSI is at 55 with bullish divergence and buy signal. MACD is at 14 with bullish crossover means if long term sustains then we might see big gains in gold prices in longer terms.
Mcx gold future opened strong for august and small correction tested support of 28250 with low of 28300. Then short covering rally triggered on global news flow which achieved august bullish targets of 28900 and 29250. This week we saw high above 29250 and flash crash low of 28777 but prices holding near highs which is bullish sign and might preparing for super bullish run ahead.
If falls below 29250 with strong price action and on volume then it will trigger correction and consolidation. That we saw this week and on correction tested support of 28900 with low of 28777 on last trading session of this week.
Mcx gold daily chart price trend and momentum is bullish. On daily chart, mcx gold future is trading way above all short term averages with bullish price pattern and suggesting strong rally ahead. On downside 29150 is 5 days average level, below it 28900 is 20 days average level and 28700 is 50 days strong support zone. And this week we saw freak downside move and testing of support 28700. Daily chart RSI level is 61 and heading higher after deep in this week. MACD is at 206 with early topped out signal.
From long term view, mcx gold future opened bullish for 2017 but facing continues resistance around 29500 level. We saw 3 times sell off around this level. Now prices are heading for breakout above 29500 for big upside targets. On downside 28200 is long term support zone and above it outlook is bullish and my upside investment targets are 31400 and then 35600.
In 2017, gold future had given five positive closings while 2 were negative closing reflecting overall bullish outlook of this precious metal. And this month long bullish candle is definitely is long term breakout signal.