Maintain long positions. The COMEX Gold ended the latest session in positive territory. Intraday, the precious metal swung between a low and high of USD1,230.60 and USD1,244, before closing at USD1,234.80, indicating a gain of USD2.40. Price actions over the past three weeks are showing the commodity consolidating around the zone that consists of both the 100-day SMA line and also the immediate resistance of USD1,246. A firm upside breach from this resistance zone would likely suggest the commodity would have a strong chance of extending its upward move. The daily RSI reading of 55.59 means the rebound so far has not overstretched. As such, we are keeping our positive trading bias.

Give that the rebound is still showing sign of extending, 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 below USD1,222.30.

Towards the downside, immediate support is at the USD1,215 mark, or 20 Jul’s low. The following support is at USD1,184, which was the low of 24 Aug. Conversely, the immediate resistance is set at USD1,246 mark, ie 26 Oct’s high. This is followed by USD1,272.30, or the high of 9 Jul.

Source: RHB Securities Research - 8 Nov 2018