Maintain long positions, as the bulls still exhibit strength. The COMEX Gold managed to reverse its earlier session’s losses yesterday to settle USD6.10 higher at USD1,298.50. The session’s low and high were at USD1,292.60 and USD1,301.30, which implies that 4 Jan’s “Bearish Engulfing” pattern – which appeared after the daily RSI reached an overbought threshold recently – remains unconfirmed. As such, the risk for the commodity to experience a deeper retracement after its multi-month upward move is deemed as low for now. For said bearish formation to be confirmed, the immediate support needs to be breached decisively. Based on these technicalities, we maintain our positive trading bias.

As there are no apparent technical signs to suggest an end to the upward move, we still recommend traders to keep long positions – we initiated this at the USD1,216 mark, which was 14 Nov 2018’s closing level. For riskmanagement purposes, a stop-loss can be placed below the USD1,284.60 threshold.

The immediate support is maintained at USD1,284.60, ie the latest session’s low. The second support is at USD1,267.40, or the low of 21 Dec 2018. Moving up, the immediate resistance is pegged at USD1,332.40, which was the high of 11 May 2018. This is followed by USD1,370.50, or the high of 25 Jan 2018.

Source: RHB Securities Research - 10 Jan 2019