Gold price prediction today: Gold prices are likely to maintain a bullish momentum in the coming days. However, today’s technical set-up signals a sell on rise strategy, says Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. Here is his strategy for gold investors:The gold market is currently in a state of high volatility, with strong underlying bullish momentum offset by a potential for short-term correction. For intraday traders, a “sell on rise” strategy near key resistance levels is a high-risk, high-reward approach that can be considered. This analysis, based on a combination of intraday technical indicators, outlines the rationale behind a “sell on rise” setup for the MCX Gold December contract.
Gold Intraday Trading View: Sell on Rise Strategy
The market is fundamentally bullish, but the technicals suggest it may be overextended in the very short term. Rationale: The proposed sell-on-rise strategy is based on the premise that the confluence of overbought indicators (RSI and Bollinger Bands) and the price stalling at a key resistance level (117250-117400) will lead to a temporary correction. The current price action may be a result of profit-booking by short-term traders.Entry Zone: SELL GOLD DEC NEAR 117250-117400This entry point is strategically chosen to be at a key resistance level where the price has previously faced selling pressure. Stop-Loss (SL): 118200The stop-loss is placed well above the recent high, providing a safety net in case the bullish momentum continues and breaks out of the overbought zone. This is a critical risk management component for a counter-trend trade. Target (TGT): 116400This target is a plausible short-term objective, aligning with the previous day’s low or a key support level, where a correction might find a foothold.Conclusion:While the overall trend for gold remains strongly bullish, the intraday technical setup presents an opportunity for a short-term, high-risk “sell on rise” trade. This strategy is for nimble intraday traders who are comfortable with counter-trend setups and have a strict risk management plan. The trade relies on a temporary correction fueled by overbought conditions and profit-booking rather than a reversal of the primary trend.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
