Gold prices are exhibiting a weak intraday bias, according to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities. He recommends a sell on rise strategy for traders.
Current Market Overview
Gold August futures on the Multi Commodity Exchange (MCX) are trading near Rs 1,58,000 after a sharp breakdown from the recent consolidation range. The price action indicates strong selling pressure as prices have slipped below key short-term moving averages and support zones. The current trend favors selling on rallies, with higher levels likely to attract fresh supply.
Technical Indicators
EMA 8 and EMA 21: The 8-period Exponential Moving Average (EMA) has slipped below the 21 EMA, confirming a bearish crossover. Prices are trading below both moving averages, indicating that short-term momentum remains firmly in favor of bears.
Bollinger Bands: Gold is trading near the lower Bollinger band, reflecting strong downside momentum. Any pullback toward the middle band is likely to face selling pressure.
Price Structure: The chart reflects a clear lower-high and lower-low formation, confirming continuation of the downtrend. The recent breakdown below the support zone around Rs 1,58,600 has further strengthened the bearish setup.
RSI Indicator: The Relative Strength Index (RSI) is near 30, hovering around oversold territory. While minor pullbacks cannot be ruled out, momentum remains weak and supports a sell-on-rise strategy.
MACD: The Moving Average Convergence Divergence (MACD) remains in negative territory with widening histogram bars, indicating strengthening bearish momentum and lack of buying conviction.
Gold Intraday Trading View
- Strategy: Sell on rise
- Sell Zone: Rs 1,58,300 – Rs 1,58,500
- Stop-Loss: Above Rs 1,59,100
- Target: Rs 1,57,500
- Bias: Bearish below Rs 1,58,500; reversal only above Rs 1,59,100
Gold’s intraday technical structure remains weak following a decisive breakdown below key support levels. The bearish EMA crossover, weak RSI, and negative MACD setup suggest that rallies are likely to be sold into. Traders may consider selling near Rs 1,58,300–Rs 1,58,500, maintain a strict stop-loss above Rs 1,59,100, and look for a downside move toward Rs 1,57,500 during the session.
Sell on Rise | Resistance: Rs 1,58,500 | Target: Rs 1,57,500
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.
Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.
About the Author
The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
