Gold prices in India might experience some profit booking today after a powerful rally. Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, shared this view. He pointed out that gold futures on the Multi Commodity Exchange (MCX) are currently trading around ₹1,42,530. This level comes after an extended upward move that now shows clear signs of tiredness at higher price points.
Technical Indicators Signal Exhaustion
The broader trend for gold remains bullish when looking at longer timeframes. However, the intraday structure tells a different story. It indicates exhaustion as momentum indicators approach overbought territory. This situation sets the stage for a corrective move. Higher levels now appear vulnerable to selling pressure during today's trading session.
Detailed Technical Setup
Prices are trading well above both the 8-day and 21-day Exponential Moving Averages (EMAs). This positioning suggests an overstretched rally. While these moving averages continue to slope upward, the significant distance between current prices and the EMAs indicates limited upside potential in the immediate term. It also raises the probability of a pullback toward mean levels.
Gold is currently hovering close to the upper Bollinger band. This reflects strong bullish momentum but also signals overextension. Historically, such positioning often leads to intraday profit booking or consolidation. This favors a sell-on-rise approach for traders.
Key Resistance and Support Levels
Resistance Zone: ₹1,42,500 – ₹1,43,000
Support Levels: ₹1,41,600 followed by ₹1,41,000
Failure to sustain above the resistance band strengthens the case for a corrective decline. The Relative Strength Index (RSI) is near 69, just below the overbought threshold. This reflects strong momentum but also warns that fresh buying at higher levels may be limited. This increases the likelihood of a short-term reversal.
The Moving Average Convergence Divergence (MACD) remains positive. However, the histogram is flattening. This indicates that bullish momentum is losing strength. A pause or correction could follow this development.
Intraday Trading Strategy
Strategy: Sell on rise
Sell Zone: ₹1,42,500 – ₹1,43,000
Stop-Loss: ₹1,44,000
Downside Target: ₹1,41,000
Bias: Corrective bearish below ₹1,43,000; strength only above ₹1,44,000
Conclusion and Trading Advice
Gold's intraday technical setup suggests a short-term corrective phase after a sharp rally. Overbought momentum, upper Bollinger band resistance, and stretched EMA positioning all favor profit booking at higher levels. Traders are advised to sell on rise in the ₹1,42,500–₹1,43,000 range. They should maintain a strict stop-loss at ₹1,44,000 and look for a move toward ₹1,41,000 during the session.
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.
