Gold had given a good run up since last one year, when interest in the Equities had faded off. But now things could change and money could flow back into Equities after government wining trust back through a budget which was surely repairing our Fiscal targets. Two more fundamental reasons for Domestic Gold to witness sell-off are, appreciating rupee and sell-off in International gold. Equity markets around the world have seen a quick rally from almost 200 Weekly SMA and so alternative investment asset gold has to see a profit booking.
Technically as chart suggest, a wedge pattern breakout has been confirmed today at 29200 which is trigger level for Shorting gold. Indicators on the daily chart are also in overbought zone supporting the wedge breakout. Though Confirmation depends on todays closing but i would take a risk early considering cross market analysis.
Recommended Strategy: Sell Gold (CMP:29130) Tgt: 28000 SL: 29800