Positive trend continues to develop; maintain long positions. The COMEX Gold formed a white candle and at the closing marked another high – after its 100-day and uptrend line (drawn in the chart) were tested on 13 Nov. Intraday tone was positive as the commodity generally moved higher for the entire session. The low and high were registered at USD1,226.60 and USD1,240.40, before it ended USD13.60 higher at USD1,239.60. This implies the commodity is extending its uptrend without signs of exhaustion, while its daily RSI reading of 58.11 is indicating the upward move so far has not been stretched. Based on these, we maintain our positive trading bias.

As the latest strong performance signals that the said uptrend is still developing – we continue to recommend traders to keep to long positions at the USD1,216 mark, or 14 Nov’s closing level. For risk-management purposes, a stop-loss can now be placed at the breakeven mark.

Towards the downside, immediate support is expected to emerge at USD1,202.40, or the low of 13 Nov. The following support is at USD1,184, which was the low of 24 Aug, while overhead 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 - 4 Dec 2018