Initiate long positions as the commodity has likely completed its multi-week correction. The COMEX Gold edged up USD6.40 to settle at USD1,308.30 – breaching above the previous immediate resistance of USD1,304.60. During the intraday, the commodity reached a low and high of USD1,300.60 and USD1,310.40. The crossing of the said previous immediate resistance, in our view, has likely marked the end of the multi-week correction phase. This implies chances are high that the commodity would resume its upward move that started from the low of USD1,162.70 on 16 Aug 2018. We change our trading bias to positive.

Our previous short positions initiated at the USD1,322.70 level, the closing mark of 1 Mar, were closed out at the latest session at USD1,304.60. On the bias that the commodity is now likely to resume its upward move, we initiate long positions at the latest closing. For risk-management purposes, a stop-loss can be placed below USD1,281.50.

Immediate support is still maintained at USD1,281.50 – the low of 24 Jan 2018. This is followed by USD1,270.30, or the high of 20 Dec 2018. Meanwhile, we revise the immediate resistance to USD1,330.80, which was the high of 25 Mar. This is followed by USD1,349.80, the high of 20 Feb.

Source: RHB Securities Research - 10 Apr 2019