Bulls are still present; maintain long positions. The COMEX Gold formed a white candle in the latest trading after it tested the 100-day SMA line intraday. The session’s low and high were posted at USD1,216.8 and USD1,233.8, before it ended USD9.90 higher at USD1,229.80. The strong intraday reversal from the said SMA line is indicative of the re-emergence of the bulls and chances are high that the commodity is in the process of resuming its upward move, which started from the low of USD1,162.70, the low of 16 Aug. Based on this, we maintain our positive trading bias.

With the commodity still trading well above both the said SMA line and the uptrend line (as drawn in the chart), 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.

We are still expecting immediate support to emerge at USD1,202.40, or 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, ie the high of 26 Oct. This is followed by USD1,272.30, or the high of 9 Jul.

Source: RHB Securities Research - 29 Nov 2018