Bouncing off from the immediate support; maintain long positions. Yesterday, the yellow metal posted a vital intraday reversal from the immediate support of USD1,306.40 – which was briefly breached, indicating bulls are re-emerging at the said level. The session saw a low of USD1,304.70 and high of USD1,317.40, before closing at USD1,313.90, indicating a decline of USD1.20. With the said support holding at the closing, the risk for the commodity to experience a deeper retracement is still contained. Consequently, we maintain our positive trading tone.

With the signs that the bulls are still pushing back from the said support level, 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 be placed below the USD1,306.40 mark.

Immediate support is set at USD1,306.40, which was the low of 7 Feb. The second support is at USD1,281.50, the low of 24 Jan. Moving up, 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 - 15 Feb 2019