Maintain long positions, as the bull are charging ahead. The COMEX Gold experienced a positive session – it breached away from its multi-week consolidation phase at the close. The session’s low and high were posted at USD1,443 and USD1,475.90, before the commodity settled USD19 higher at USD1,470.60. The breakaway from said consolidation phase indicates that the COMEX Gold’s upward move is still healthy and continues to develop. While we note that the Daily RSI is again flashing out overbought reading, the still-strong price action continues to indicate that the bulls remain in firm control. We stick to our positive trading bias.

On the observation that the commodity is still showing good signs of extending 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.

The immediate support is set at USD1,406, or near the low of 1 Aug. This is followed by USD1,336.60, which was the low of 17 Jun. On the other hand, the immediate resistance is set at the USD1,500 threshold. This is followed by the USD1,550 level.

Source: RHB Securities Research - 6 Aug 2019