Mcx gold future in month of September, closed at 29565 with loss. This was first losing month for mcx gold future after strong gains in august. In September, mcx gold future hit high at 30474 while recorded low of 29443 and closed near low. Total almost 1000 rupee month range and weak closing for mcx gold future on profit booking and risk on trades.
For month of October, mcx gold future below 29835 will remain weak and bearish and trading strategy remain sell on rise with stop loss above 29835. On downside mcx gold future will have support as well as sell targets around 29100 and then 28800 for October series. If gives reversal and sustain above 29835 then that will be strong buy signal for short covering rally up to 30220 to 30860 levels.
On daily chart, mcx gold is near major support and signaling reversal rally for upside targets. if holds recent low of 29500 then expect recovery up to 29835 and then possibly trend breakout and uptrend for this series. On weekly chart, mcx gold major support around 29300 so medium term traders and investors must watch this level on weekly closing basis for reversal or breakdown.
For bullion traders, mcx gold future outlook below 29835 remain strong bearish and trading strategy will remain sell and accumulate but indicators suggesting reversal so wait and watch next 1-2 days move and then take long or short call for given targets. If gold resumes long term uptrend then this time expect top around 31450. Last weekly chart top was at 30474 rupee.