Technical picture remains healthy; maintain long positions. The yellow metal eased slightly in the latest session to close at USD1,406.20 (-USD0.10). Trading took place in the range of USD1,400.10 and USD1,415.90. Overall, the commodity has been trading in a possible sideways consolidation pattern over the past two weeks. This is deemed as healthy to correct its prior multi-week’s relatively sharp upward move that reached an overbought reading recently. Maintain our positive trading bias.

As the technical picture is still suggesting a positive bias, we retain our recommendation for traders to stay in long positions. We opened these positions at USD1,333.60, which was the closing level of 5 Jun. For risk-management purposes, a stop-loss can be placed at the breakeven mark.

Towards the downside, immediate support is set at USD1,336.60, which was the low of 17 Jun. This is followed by USD1,300, the next round figure. On the other hand, the immediate resistance is set at USD1,432.90, or the high of 28 Aug 2013 – this is followed by the USD1,500 threshold.

Source: RHB Securities Research - 9 Jul 2019