Gold: Selling pressure is expected near the golden ratio

By Gaurav Ratnaparkhi, Technical Analyst at Sharekhan Ltd

MCX Gold has broken out from a short term falling channel. It has surpassed 20 DMA & 40 DEMA as well.

Owing to weak rupee the bounce is turning out to be a deeper one. 50 per cent retracement (29780) & 61.8 per cent retracement (29940) of the channelised fall are likely levels for the bounce.

Daily KST is also forming a pullback cycle and is in sync with the price structure. Selling pressure is expected near the Golden Ratio i.e. 61.8 per cent retracement mark (29940), which will bring the yellow metal down to a rising trendline i.e. 29000.