Maintain long positions until the trailing-stop is hit. The COMEX Gold ended the latest session on a negative note, this was after it tested both the downtrend line (as drawn in the chart) and the recent high. The commodity traded in the range of USD1,286.50 and USD1,298.70, before ceasing USD4.20 lower at USD1,287.40. The intraday reversal and a possible price rejection from both the recent high and the said downtrend line are negative technical indications – as it suggests the recent rebound may just be a minor rebound within the multi-week correction phase. However, for now, until the immediate support is breached, we are keeping our positive trading bias.

Until there emerge further negative price actions that could negate our positive bias, we continue to recommend traders stay in long positions. These were initiated at USD1,290.20, which was the closing level of 1 May. A stoploss can be placed below the USD1,267.90 level.

Towards the downside, immediate support is expected at USD1,267.90, or the low of 23 Apr. This is followed by USD1,236.50, ie the low of 14 Dec 2018. Moving up, the immediate resistance is expected at USD1,330.80, which was the high of 25 Mar. This is followed by USD1,349.80, or the high of 20 Feb.

Source: RHB Securities Research - 9 May 2019