Maintain long positions as the immediate support is still holding up. Despite giving back most of its intraday gains, the precious metal settled the latest session higher by USD1.10 at USD1,315.10. The low and high were posted at USD1,308.10 and USD1,321.70. The commodity’s positive price trend is still in place, this is despite the recent corrections – which are still deemed as narrow and healthy. The risk of a greater retracement developing would increase if the immediate support of USD1,306.10 is breached on the downside. Until this happens, we maintain our positive trading tone.

Given that the consolidation phase that is being observed is still confined to a narrow band, 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 riskmanagement purposes, a stop-loss can be placed below the USD1,306.40 mark.

Towards the downside, the immediate support is expected at USD1,306.40, which was the low of 7 Feb. The following support is eyed at USD1,281.50, the low of 24 Jan. Conversely, the immediate resistance is set 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 - 14 Feb 2019