MCX Gold October: Sell CMP 26600 | Stop @ 27020 | Target @ 26185 — 25353
MCX Gold Faces Resistance At 27020
The daily technical chart of MCX Gold October contract shows A-B-C Pattern formation. Gold dropped from 27833 (Point A) in June and took support at 26169 (Point B) in August. Thereafter, gold prices retraced by 50% of the decline from Point A to Point B and touched the resistance of 27017 (Point C) recently.
The prices are expected to correct if it fails to cross the resistance level of 27017.
Gold fell by 1664 points (27833-26169). As per the A-B-C Pattern, calculating the same distance from 27017 will bring the target to 26185 (27017-832) on the lower side, which is the 50% of distance between Point A and Point B.
Thereafter, the next target could be 25353, considering the 100% of distance between Point A and Point B.
However, if gold reverts from the current level and trades above 27017 then the target on higher side would be 27830.
