MCX Gold failed again to hold 88.6% correction of CD leg of the bullish AB=CD pattern, and returned to trade below the Linear Regression Indicators. RSI bearish divergence and MACD crossed over negatively and accordingly we expect the extension of the downside move for MCX Gold toward 29800.
We should note however that a breakout below 29800 is required to extend the downside move toward the bullish support that carried the move from the low D around 27000 and returning above 30100 might weaken the current downside correction.
Note: The current downside move does not end the entire upside wave and it will be considered merely correction. Stability above 29200 will keep the general upside move valid affected by AB=CD harmonic pattern.
Trading Mantra Recommendation : Based on the above, Sell MCX Gold below 30000 targeting 29900 then 29800 and 29300 and stop-loss above 30400 this week