Bulls are pushing ahead; maintain long positions. The COMEX Gold performed positively in the latest session – at the closing it managed to cross above the 100-day SMA line. The session’s low and high were posted at USD1,220.30 and USD1,232.10, before it ended USD7.90 higher at USD1,229. The upside breach of the said SMA line is reinforcing our positive bias for the commodity to rebound higher. For now, as long as the uptrend line (as drawn in the chart) is not breached to the downside, the risk for the commodity’s rebound reaching an end is considered low. Based on these, we keep to our positive trading bias.

As the upward bias is further validated by the upside breach of the said SMA line, we continue to recommend that traders keep to long positions at USD1,216, which was the closing level of 14 Nov. For risk management purposes, a stop-loss can be placed at USD1,184.

Immediate support is set at USD1,184, which was the low of 24 Aug. The following support is at USD1,162.70, the low of 16 Aug. Moving up, the immediate resistance is set at USD1,246, the high of 26 Oct. This is followed by USD1,272.30, or the high of 9 Jul.

Source: RHB Securities Research - 19 Nov 2018