Maintain short positions as the precious metal is still trading below the downtrend line. The Comex Gold managed to stage a positive intraday price reversal – to finish the latest session USD3.40 higher at USD1,478.80. This came after it hit a low of USD1,463.30. The precious metal has been showing signs of rebound in the recent sessions. This came after it experienced a relatively sharp decline between 4 and 11 Nov. For now, provided the metal is still capped by the downtrend line (as drawn on the chart), the correction phase that started from the high of USD1,566.20 on 4 Sep would still be deemed as in place. Maintain our negative trading bias.

On the bias that the recent rebound has yet to signal the end of the said correction phase, we recommended traders stay in short positions. We initiated these at USD1,464.10, the closing level of 11 Nov. For risk-management purposes, a stop loss can be placed above USD1,525.00.

Immediate support is pegged at the USD1,406.00 mark, ie near the low of 1 Aug. This is followed by USD1,390.90, the low of 1 Jul. Moving up, the immediate resistance is now pegged at USD1,525.00, the high of 3 Oct. This is followed by USD1,566.20, which was the high of 4 Sep.

Source: RHB Securities Research - 19 Nov 2019