Maintain long positions as the technical picture remains positive. The COMEX formed a white candle in the latest session to settle at USD1,230.10, indicating a gain of USD2.70. The session’s low and high were at USD1,221.70 and USD1,233.60. Despite the positive session, we observe that the commodity is still trading within a minor consolidation mode above the USD1,215 immediate support level. This consolidation set in after the recent sharp upward move. A breakout from this minor consolidation zone may signal the extension of the commodity’s positive price trajectory. Hence, we are keeping our positive trading bias.

With the commodity experiencing a healthy consolidation above the said immediate support, 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 placed below USD1,215.

The immediate support is set at the USD1,215 mark, or 20 Jul’s low. The second support is at USD1,184, which was the low of 24 Aug. On the other hand, the immediate resistance is eyed at the 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 - 19 Oct 2018