Maintain long positions as the rebound is resuming. The COMEX Gold formed a long white candle in the latest session - at the closing, it successfully crossed above the previous resistance zone, which comprised the previous immediate resistance mark of USD1,215 and the 50-day SMA line. The precious metal moved progressively higher throughout the session, from a low of USD1,194.70 to a high of USD1,230, before ceasing USD34.20 higher at USD1,227.60. The breakout from the said previous resistance zone – which had been capping the commodity over the past six weeks – is significant, as it signals the consolidation phase over the said period has reached to an end. With this, chances are high the commodity would extend its rebound. Hence, we are keeping our near-term positive trading bias.

With the positive signal for commodity to extend its rebound, we continue to advise traders to keep their long positions. Recall that we initiated these positions after the precious metal breached above the USD1,207.60 mark on 12 Sep. For risk-management purposes, a stop-loss can be revised to the breakeven level.

Immediate support is revised to USD1,215 mark, or 20 Jul’s low. This is followed by USD1,184, which was the low of 24 Aug. Moving up, immediate resistance is now pegged at USD1,239 level, which was 26 Jul’s high. This is followed by USD1,272.30, the high of 9 Jul.

Source: RHB Securities Research - 12 Oct 2018