MS: Gold futures likely to consolidate in short term
Dharmesh Bhatia, technical analyst from Kotak Commodity Services has estimated the MCX Gold December contract to witness consolidation in the short term.
``A upward channel movement can be seen on the daily chart of Gold December contract. The channel is of significance as there has been seven different occasions in a year, where the price has failed to go pass the channel``, he stated.
Prices after taking a support on the long term trend line, rally upwards and create new high. On the last occasion the price after supporting at Rs 11,304 rallied made a historical high of Rs 14,307. This time the price is consolidating near the bottom indicating either side rally.
With an expectation of bullish trend, he suggested taking long position in MCX Gold December contract targeting Rs 12,370 -12,450 with stop below Rs 11,260.
