Maintain long positions, as the bulls are merely taking a breather. The COMEX Gold formed a black candle in the latest session. It weakened USD8.80 at the close to settle at USD1,219.90. For the intraday, the commodity generally slid lower, with the high and low posed at USD1,231.70 and USD1,217.80. The weak session is still considered as part of the COMEX Gold’s ongoing consolidation phase, which has been in development over the latest four sessions. Provided the commodity stays above both the 100-day SMA and uptrend lines, as drawn in the chart, the probability is still high for it to extend its positive trend. As a result, we still keep our positive trading bias.

As we are not seeing the recent session’s price performance has as an indication that the COMEX Gold’s rebound has reached an end, we continue to recommend that traders keep to long positions at the USD1,216 mark. This was 14 Nov’s closing level. For risk-management purposes, a stop-loss can be placed at the USD1,202.40 threshold.

Towards the downside, immediate support is still pegged at USD1,202.40, or the low of 13 Nov. The following support is at USD1,184, which was the low of 24 Aug. Moving up, the immediate resistance is set at USD1,246, ie the high of 26 Oct. This is followed by USD1,272.30, or the high of 9 Jul.

Source: RHB Securities Research - 28 Nov 2018