Gold: Revisiting 200 days SMA, Can offer Good Selling Opportunity

Gold on mcx has opened with an upside gap and heading higher since its opening and currently trading at 26441. It has climbed above its down sloping trend line resistance and now approaching towards a congestion zone that stands around 26490-600 zones. Areas of 26540 are also resisted by 200 period’s simple moving average on daily chart. Stochastic has reached in overbought territory and may bring a temporary pause or correction near key resistance zones around 26540-600. Any sustained move above 26600 with 2 or more consecutive closes will supply more power to gold bulls and then we will see this metal heading towards 27000-27400 zones.

Recommendation: one can look for selling opportunities near 26540-600 zones with a stop loss above 26870 for targeting 26200-25900-25450 in short term.

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