Technical outlook:
MCX Gold Oct futures technical chart has taken the formation of “Rising channel” pattern in daily time frame. Last few sessions ended up in bearish testing near the channel’s support line. Based on the current price action, market is expected to continue on bearish momentum. A break below the key support level holding near 50500, could possibly test up to 50100-49700 levels in the upcoming sessions. An alternative scenario indicates that if the market struggles to break the support level, then it might retest the same and revise the trend to bullish/sideways mode once again. Key resistance holds near 51800.
Research Report Call:
Sell below 50500 target 50100-49700 stop loss TRAILING; If break above 51000 target 51400-51800 stop loss TRAILING