Positive trend is extending; maintain long positions. The yellow metal advanced USD5.90 to settle at USD1,315.20 in the latest session. Intraday, the underlying tone was positive as it generally moved higher with the low and high registered at USD1,307.80 and USD1,317.10. The positive session is the continuation of the commodity’s positive price trajectory, as it recently completed its 3-week sideways consolidation phase. The momentum is also encouraging, with the Daily RSI breaking out from the resistance line (as marked in the chart) without flashing out an overbought reading. Hence, we keep to our positive trading bias.

As the positive price trend continues to develop without signs of exhaustion, we continue to advise traders stay in 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 now be placed below the USD1,281.50 threshold.

Towards the downside, immediate support is pegged at USD1,281.50, which was the low of 24 Jan. The second support is set at USD1,267.40, which was the low of 21 Dec 2018. Meanwhile, the overhead resistance is envisaged at USD1,332.40, ie the high of 11 May 2018, is the immediate resistance. This is followed by USD1,370.50, or the high of 25 Jan 2018.

Source: RHB Securities Research - 30 Jan 2019