Maintain long positions while moving the trailing-stop higher. The COMEX Gold failed to sustain its earlier session’s positive momentum, which saw it testing the immediate resistance of USD1,550 with an intraday high of USD1,558.60. At the closing it shed USD0.50 to settle at USD1,530.90 Consequently, a “Shooting Star” formation emerged. However, further negative price actions still need to be observed in the coming sessions to confirm the said formation. For now, we stay with our positive trading bias.

Given that there is no confirmation to indicate the commodity’s upward move has reached an end, 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 USD1,450 mark.

We are keeping the immediate support at USD1,406, or near the low of 1 Aug. This is followed by the USD1,336.60 level, which was the low of 17 Jun. Moving up, the immediate resistance is expected at the USD1,550 mark. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 27 Aug 2019