Maintain long positions, as the bulls are pushing back. The precious metal continued to push back for the second consecutive session after the recent bout of a relatively shallow retracement. The metal closed USD4.30 higher at USD1,318.50 – as it generally moved higher for the whole session with the low and high posted at USD1,311.50 and USD1,319.50. Overall, the commodity’s upward trend is still valid – this is despite the fact its recent high was accompanied by the Daily RSI negative divergence, which could be an early indication of losing momentum. Towards the downside, should the immediate support of USD1,306.40 be broken in the coming sessions, chances are high the commodity would experience a deeper retracement. Until this happens, we are keeping our positive trading tone.

As price actions are showing bulls are still in control, we continue to advise traders stay in long positions. We initiated this at the USD1,216 level, which was 14 Nov 2018’s close. For risk-management purposes, a stop-loss can now be placed below the USD1,306.40 mark.

Immediate support is revised to USD1,306.40, which was the low of 7 Feb. This is followed by USD1,281.50, the low of 24 Jan. Conversely, the immediate resistance is still expected at USD1,332.40, ie the high of 11 May 2018. This is followed by USD1,370.50, which was the high of 25 Jan 2018.

Source: RHB Securities Research - 11 Feb 2019