No negative follow-up; maintain long positions. The COMEX Gold eased USD9.40 to close at USD1,557.00 in the latest session. The low and high were registered at USD1,553.40 and USD1,569.50. Despite the weak session, we are of the view that there is still no confirmation to the 8 Jan’s “Bearish Engulfing” formation – if it happens, it could mean the risk of the precious metal experiencing a deeper correction should increase. A downside breach of the USD1,547.40 immediate support ought to confirm said bearish formation. For now, we stick to our positive trading bias.

In the absence of negative price follow-ups, we continue to recommend traders stay in long positions. We initiated these at USD1,529.30, or the closing level of 31 Dec 2019. For risk-management purposes, a stop-loss can now be placed below the USD1,547.40 mark.

The immediate support is revised to USD1,547.40, which was the low of 9 Jan. This is followed by the USD1,500.00 level. Meanwhile, the immediate resistance is pegged at USD1,619.60, which was the high of 8 Jan’s “Bearish Engulfing” pattern. This is followed by the USD1,650.00 mark.

Source: RHB Securities Research - 14 Jan 2020