Eying a breakout from multi-week consolidation phase; maintain long positions. The yellow metal ended the latest session on a positive note. At the closing, it added USD25.10 to settle at USD1,451.60 – the trading range was between USD1,436.60 and USD1,455.90. The positive session can be seen as a signal that bulls are attempting to break away from the multi-week consolidation phase, which was meant to correct the previous sharp upward move between May-June. Hence, we keep to our positive trading bias.

On expectation that the commodity is now ready to extend its upward move, we retain our recommendation for traders to stay in long positions. We opened these positions at USD1,333.60, which was the closing level for 5 Jun. For risk management purposes, a stop-loss can now be placed below the USD1,406 mark.

We are now eying the immediate support at USD1,406, or near the low of 1 Aug. This is followed by USD1,336.60, which was the low of 17 Jun. Moving up, the immediate resistance is set at the USD1,500 threshold. This is followed by the USD1,550 level.

Source: RHB Securities Research - 5 Aug 2019