Maintain long positions as the upward bias is still looking good. The COMEX Gold performed positively in the latest session – it ended USD6.80 better to settle at USD1,233.80. Intraday, the commodity generally trended higher, with the low and high posted at USD1,226.20 and USD1,236.70. The positive closing has placed the precious metal further above the 100-day SMA line – indicating a positive bias. Furthermore, the commodity is trending well above the 4-month uptrend line (as drawn in the chart). Provided it stays above these two levels, the probability is high that it will extend its upward move. The daily RSI is also indicating that momentum is picking up again. Hence, we maintain our positive trading bias.

With no price reversal signals spotted that could threaten its upward move, 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 USD1,202.40.

Towards the downside, immediate support is set at USD1,202.40, the low of 13 Nov. The second support is at USD1,184, which was the low of 24 Aug. Conversely, 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 - 22 Nov 2018