Maintain long positions as upward move continues to extend. The precious metal ended the latest session positively, and in the process breached through the previous immediate resistance of USD1,332.40. The intraday movements were encouraging as the commodity generally scaled higher with the low and high registered at USD1,325.90 and USD1,345, before ending USD22.70 higher at 1,344.80. The strong breakout from the previous immediate resistance is signalling that the upward move that started from the low of USD1,162.70 on 16 Aug 2018 is continuing to extend. The Daily RSI, which crossed above the resistance line (as drawn in the chart), is also indicating an encouraging momentum – this is despite the overbought reading. Maintain positive trading bias.

As the yellow metal continued to exhibit strong positive price actions – despite being overbought – we continue to advise traders to 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 maintained at USD1,306.40, which was the low of 7 Feb. The second support may be found at USD1,281.50, the low of 24 Jan. Moving up, the immediate resistance is revised to 1,370.50, which was the high of 25 Jan 2018. This is followed by USD1,400, a round figure.

Source: RHB Securities Research - 20 Feb 2019