Minor consolidation taking place, maintain long positions. The precious metal ceased its latest trading USD1.60 higher at USD1,303.70. The session’s low and high were at USD1,299.30 and USD1,307.50. We believe the COMEX Gold is still likely to develop a minor sideways consolidation phase, marked by the appearance of the “Bearish Harami” formation on 14 May. This is considered healthy, after the recent breakout from the downtrend line (as drawn in the chart). We maintain our positive trading bias.

On expectations that the commodity will likely extend its upward move after said minor consolidation phase is over, 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 stop-loss can now be placed at the breakeven level.

The immediate support is set 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 set 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 - 16 May 2019