Maintain long positions. The COMEX Gold ended the latest trading session positively, and at one point breached above the immediate resistance of USD1,239. It gained USD3.40 to settle at USD1,235.80, while the session’s low and high were recorded at USD1,232.5 and USD1,246. While the commodity is still not able to decisively breach above the said immediate resistance and 100-day SMA line, the overall positive landscape is still valid – as there was no price reversal signal spotted. Towards the downside, a break of the immediate support of USD1,215 would likely signal that the rebound so far could be at risk. Until this happens, we are keeping our positive trading bias.

As there are no signals to suggest that the commodity’s rebound has reached an end, we continue to advise traders to keep their long positions. Recall that we initiated these positions after the COMEX Gold breached above the USD1,207.60 mark on 12 Sep. For risk management purposes, a stop-loss can be placed at below USD1,219.30, which was the low of 12 Oct.

Towards the downside, an immediate support is expected at the USD1,215 mark, or 20 Jul’s low. This is followed by USD1,184, which was the low of 24 Aug. Moving up, the immediate resistance is eyed at the USD1,239 level, ie 26 Jul’s high. This is followed by the USD1,272.30 threshold, or the high of 9 Jul.

Source: RHB Securities Research - 29 Oct 2018