Gold (28.3.2014) traded higher as per previous report & extended target area. However it reverse quickly from an unexpected level later on. Now gold is trading around $1296 & as we can see on charts, gold has broken the support trade line started from $1180 mark in 2013. This breakout came in combination of 2 parallel breakout as well as provide more continuity opportunity with trading below 38.2% feb correction area. However over sold indicators may delay the downside move & look for consolidation before falling further. Candlestick patten is negative with indicators. On fundamental side, FOMC continue on its path of reducing bond buying program keeping high pressure on gold prices, while economic data showing little improvement. Based on above studies, we will prefer to sell gold for more downside target around $1268 & then $1261. Only a day close above $1307 will force us to reanalyze the charts.
MCX Gold Futures -(June Futures) resistance area : 28625 – 29000 MCX Gold Futures – (June Futures) support area : 28130 – 27950 – 27640