Gold prices on the Multi Commodity Exchange (MCX) are exhibiting a bullish bias in today's session, according to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities. The MCX Gold August futures continue to trade with a firm undertone after a strong recovery from lower levels, suggesting that bulls remain in control despite the Relative Strength Index (RSI) entering overbought territory.
Technical Setup Remains Constructive
The technical structure for gold remains favourable, with higher highs and higher lows intact. The price is comfortably trading above the short-term moving averages and the previous day's pivot support. Below is a summary of key technical indicators:
| Indicator | Reading/Signal | Implication |
|---|---|---|
| EMA 8 & EMA 21 | 8-period EMA above 21-period EMA, sloping higher | Sustained short-term bullish momentum; declines likely to attract buying |
| Bollinger Bands | Price trading near upper band | Strong buying momentum; pullback towards middle band seen as buying opportunity |
| Pivot Points | Previous day's pivot acting as immediate support; price above CPR zone | Short-term trend positive; favours continuation towards higher resistance |
| RSI (14) | Near 73 (overbought) | Strong momentum; can remain elevated in trending markets |
| MACD | Above signal line with positive histogram bars | Improving upside momentum; confirms bullish structure |
The 8-period EMA continues to trade above the 21-period EMA, confirming sustained short-term bullish momentum. The moving averages are sloping higher, indicating that every decline is likely to attract fresh buying interest. Gold is trading close to the upper Bollinger Band, reflecting strong buying momentum. While prices may witness minor intraday consolidation, any pullback towards the middle band is expected to offer a favourable buying opportunity.
The previous day's pivot level is acting as immediate support, while prices continue to trade above the CPR zone. Holding above the pivot keeps the short-term trend positive and favours continuation towards higher resistance levels. The RSI is trading near 73, indicating strong momentum. Although the indicator is in the overbought territory, it also reflects the strength of the prevailing uptrend. During trending markets, RSI can remain elevated for extended periods. The MACD remains above the signal line with positive histogram bars, indicating improving upside momentum and confirming the prevailing bullish structure.
Trading Strategy: Buy on Dips
Based on the current technical setup, Jateen Trivedi recommends a buy-on-dips strategy for intraday traders:
- Entry Zone: Rs 1,47,400
- Stop-Loss: Below Rs 1,46,800
- Target 1: Rs 1,48,150
- Target 2: Rs 1,48,600 (extended)
Traders may look to buy on dips near Rs 1,47,400, with a strict stop-loss below Rs 1,46,800. The potential for a move towards Rs 1,48,150–1,48,600 during the session exists as long as prices hold above Rs 1,46,800.
Outlook and Key Levels
Gold continues to exhibit a constructive technical structure as higher highs and higher lows remain intact. The bullish crossover of short-term moving averages, positive MACD, and sustained trade above the previous day's pivot support indicate that buying sentiment remains favourable.
Although RSI has entered the overbought region, momentum indicators suggest that the trend is still strong rather than exhausted. As long as prices hold above Rs 1,46,800, traders should maintain a buy-on-dips approach, with the potential for a move towards Rs 1,48,150–1,48,600 during the session.
(Disclaimer: The views and recommendations expressed are those of individual analysts and do not represent the views of The Times of India.)
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