Gold prices are exhibiting a weak intraday bias, according to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities. He advises a sell on rise strategy for traders.
Current Market Overview
Gold futures on MCX are trading near ₹1,60,326 after a sharp recovery from lower levels. Despite this rebound, the broader intraday structure remains weak as prices struggle near immediate resistance zones. The current recovery appears corrective, and higher levels are likely to attract fresh selling pressure.
Technical Analysis
The technical setup reveals several bearish signals:
- EMA 8 & EMA 21: Price is trading below the short-term EMA resistance cluster, with EMA 8 below EMA 21, indicating continued bearish momentum. The ₹1,60,300–₹1,60,500 zone aligns with this resistance area.
- Bollinger Bands: Gold is attempting to recover from the lower Bollinger band after a steep decline. However, failure to sustain above the mid-band keeps the downside bias intact.
- Price Structure: The chart reflects a breakdown followed by a pullback rally. Lower highs and weak follow-through buying suggest that the trend remains vulnerable on the downside.
- RSI Indicator: RSI is near 27, entering oversold territory. While this may trigger intermittent pullbacks, it still reflects strong bearish momentum overall.
- MACD: MACD remains in negative territory with weak histogram recovery, indicating that selling pressure continues to dominate despite the bounce.
Intraday Trading View
Strategy: Sell on rise
- Sell Zone: ₹1,60,300 – ₹1,60,500
- Stop-Loss: Above ₹1,62,000
- Target: ₹1,58,000
- Bias: Bearish below ₹1,60,500; reversal only above ₹1,62,000
Gold’s intraday technical structure remains weak with bearish EMA alignment, oversold RSI conditions, and negative MACD momentum. The ongoing rebound appears corrective and is likely to face resistance near ₹1,60,300–₹1,60,500. Traders may consider selling on rise within the given zone, maintain a strict stop-loss above ₹1,62,000, and look for a downside move toward ₹1,58,000 during the session.
Bias: Sell on Rise | Resistance: ₹1,60,500 | Target: ₹1,58,000
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.
