Maintain long positions as the uptrend is still developing. The COMEX Gold formed a white candle in the Friday session and at the closing crossed above the previous immediate resistance of USD1,246 – which had been holding since the third week of October. Session’s low and high were at USD1,242.60 and USD1,255.80, before ending at USD1,252.60, indicating a gain of USD9. The breakout from the said previous immediate resistance is signalling that the bulls are still firmly in control, and that the uptrend that has been in development since the low of USD1,162.70 on 16 Aug is still extending. The daily RSI reading of 63.45 also suggests the uptrend is not stretched. Hence, we keep our positive trading bias.

The latest session’s breakout is a positive signal that the commodity may still be able to extend its upward price trajectory. On this, we continue to recommend 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 below USD1,235.80

Immediate support is revised to USD1,235.80, the low of 4 Dec. This is followed by USD1,202.40, or the low of 13 Nov. Moving up, the immediate resistance is now expected at USD1,272.30, or the high of 9 Jul. This is followed by USD1,286.80, the high of 19 Jun.

Source: RHB Securities Research - 10 Dec 2018