No reversal yet; maintain short positions. The COMEX Gold ended the latest session marginally lower by USD0.20 at USD1,481. The low and high were recorded at USD1,473 and USD1,486. While the precious metal has been staging a rebound over the past week, we regard this as just a minor rebound – this came after it experienced a relatively sharp drop in the first two weeks of November. For now, we are looking at the upside breach of the downtrend line (as drawn on the chart) to signal an end to its correction phase, which has developed since early September. Maintain our negative trading bias for now.

On the observation that the correction phase is still not showing signs of hitting an end, we advise traders to 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 set 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 set 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 - 21 Nov 2019