Advantage appears greater for sellers, keep in short positions. Last night, the COMEX Gold ended at USD1,525 and registered a USD2 gain. It charted a white candle after oscillating between a low of USD1,247.10 and high USD1,254, which implies that the session was led by buyers. Presently, there is no change to our bearish view, given that no firm upside development has been sighted. As a result, the positive momentum in the appearance of 14 Jul’s reversal “Bullish Harami” candlestick pattern remains unconfirmed. At this juncture, sellers have more advantage compare to buyers.

In the absence of any strong upside development, this indicates that the bulls are still unable to wrest control from the bears. As such, we maintain our short recommendation with a new trailing-stop set above the USD1,272 threshold. This is in order to lock in some of the trading profits. Recall that our short call was initially triggered below the USD1,309 mark on 16 May.

We maintain the immediate support at USD1,238, which was the low of 12 Dec 2017. The next support is found at the USD1,217 threshold, which is located at 9 May 2017’s low. On the flip side, our immediate resistance is now at USD1,272, or the high of 9 Jul. In the event that the COMEX Gold breaks above this level, the following resistance is found at USD1,286, ie the low of 21 May.

Source: RHB Securities Research - 13 Jul 2018