MCX gold is trading below its crucial daily and weekly moving averages. On a higher time frame it faced resistance near the 20-month moving average. Structurally, it can take form of a large triangular pattern, within which it is falling from the upper end towards the lower end. Recently, gold formed a minor degree bounce, which faced resistance near the key daily moving averages and started its next leg down. On the way down it has broken the swing low of Rs.26,350. The daily momentum indicator is in a bearish mode. Thus, the yellow metal is expected to slide down going ahead. The equality target is at Rs.25,940, whereas the lower end of the triangular pattern is near Rs.25,800. On the other hand, Rs.26,390 and Rs.26,531 will now act as key resistances.
