Gold prices are showing signs of a rebound, and the overall outlook remains constructive, according to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities. He recommends a buy on dip strategy for gold futures trading on the Multi Commodity Exchange (MCX).
Current Market Scenario
Gold futures on MCX are trading near ₹1,56,600 after staging a strong recovery from recent lows. The price action suggests that buyers have regained control following a sharp rebound, with prices now holding above key short-term support levels. The overall intraday structure remains constructive as long as the support zone continues to hold.
Technical Indicators Point to Bullish Momentum
EMA 8 & EMA 21: The 8-period Exponential Moving Average (EMA) has crossed above the 21-period EMA, indicating a bullish shift in short-term momentum. Prices are trading above both moving averages, confirming that dips are likely to attract fresh buying interest.
Bollinger Bands: Gold has rebounded sharply from the lower Bollinger band and is moving toward the upper band. This indicates strengthening momentum and supports a continuation of the recovery move.
Price Structure: The chart reflects a strong V-shaped recovery after a sharp sell-off. Higher highs and higher lows on the intraday timeframe indicate renewed buying interest and accumulation near support zones.
RSI Indicator: The Relative Strength Index (RSI) is near 57, comfortably above the neutral 50 mark, suggesting improving bullish momentum while still leaving room for further upside.
MACD: The Moving Average Convergence Divergence (MACD) has witnessed a bullish crossover with positive histogram expansion, confirming strengthening upward momentum.
Intraday Trading View
- Strategy: Buy on dips
- Entry Zone: ₹1,56,300 – ₹1,56,400
- Stop-Loss: Below ₹1,55,800
- Target: ₹1,57,200
- Bias: Bullish above ₹1,56,300; weakness resumes only below ₹1,55,800
Gold's intraday technical structure has turned positive following a sharp recovery from lower levels. The bullish EMA crossover, improving RSI, and positive MACD setup indicate strengthening momentum. Traders may consider buying on dips near ₹1,56,300–₹1,56,400, maintain a strict stop-loss below ₹1,55,800, and look for an upside move toward ₹1,57,200 during the session.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
