The metal dropped yesterday but failed to stabilize below 50% correction at 28550 showing on graph. AROON Indicator is showing a downside move, as RSI is trading below line 50 and Linear Regression Indicators are trading negatively.
Despite the mentioned negativity, betting on a downside move today is risky as the metal should break 28550 and stabilize below it then trading below the last bottom at the support 28400 levels to confirm the downside move. Therefore, we prefer to remain neutral today waiting for confirmation signals.
Trading Mantra Recommendation : Based on the above, we prefer to remain neutral. For traders who are willing to bet on stabilizing above 28550 and buy MCX Gold, stop-loss should be placed below 28400. But for those who are willing to bet on stabilizing below the psychological level 28800, stop-loss of the selling position should be placed above 29000.