No exhaustion to the positive trend; maintain long positions. The COMEX Gold marked a fourth consecutive white candle in the latest session. It ceased USD3.10 higher at USD1,347.90, the session’s trading range was between USD1,339.80 and USD1,349.80. Overall, the commodity’s positive price trend that started from the low of USD1,162.70 on 16 Aug 2018 is still firmly in place. While its Daily RSI is flashing out an overbought reading, there are no negative price signals to suggest that the bulls have run out of energy – implying that the risk for a retracement to develop is considered low at this juncture. Based on these technicalities, we keep to our positive trading tone.

Given that the positive price trajectory is still showing encouraging signs of extending, 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.

Towards the downside, immediate support is eyed at USD1,306.40, which was the low of 7 Feb. The following support is at USD1,281.50, the low of 24 Jan. On the other hand, the immediate resistance is expected at USD1,370.50, which was the high of 25 Jan 2018. This is followed by USD1,400, a round figure.

Source: RHB Securities Research - 21 Feb 2019