Maintain short positions until signs of deeper rebound appear. Technically, we regard the COMEX Gold’s latest performance as positive – despite the USD1 decline to settle at USD1,294.30. Intraday, the commodity briefly breached below the recent low (USD1,287.50 on 7 Mar) – and to a low of USD1,284.90 – before the rebound kicked in. The strong price reaction from the said recent low is indicating a possible price reversal – thus signalling the possibility that the commodity’s multi-week correction may have indeed reached an end. Towards the upside, we are looking for the upside breach of the immediate resistance of USD1,304.60 as the required signal to mark the end of the said correction phase. Until this happens, we keep to our negative trading bias.

Until further positive price signals emerge, we continue to recommend that traders stay in short positions. These positions were initiated at the USD1,322.70 level, which was the closing mark of 1 Mar. For risk-management purposes, a stop-loss can now be placed at USD1,304.60.

Immediate support is set at USD1,281.50, which was the low of 24 Jan 2018. This is followed by USD1,270.30, the high of 20 Dec 2018. Meanwhile, immediate resistance is revised to USD1,304.60, the high of 29 Mar. This is followed by USD1,330.80, or the high of 25 Mar

Source: RHB Securities Research - 5 Apr 2019