Maintain long positions, given the lack of price exhaustion signals to the multi-year uptrend. We are taking a look at COMEX Gold’s weekly chart today. The precious metal has been in a multi-year uptrend from the low of USD1,045.40 recorded in Dec 2015. This uptrend resumed after it completed a lengthy correction phase between Jul 2016 and Aug 2018. At this juncture, the lack of negative price signal suggests that the aforementioned multiyear uptrend is still firmly in place. Towards the upside, the positive bias could be further enhanced should the bulls manage to overcome the USD1,600 mark. We maintain our positive trading bias.

In the absence of a price signal – to indicate a possible deep correction is setting in – we advise traders to stay in long positions. We initiated these at USD1,586.40, or the closing level of 14 Feb. For risk-management purposes, a stop-loss can be placed below the USD1,1,564.40 level.

The immediate support is set at USD1,575, which was derived from 13 Feb’s candle. This is followed by USD1,564.40, or the low of 12 Feb. Towards the upside, the immediate resistance is now set at the USD1,600 round figure. This is followed by USD1,619.60, ie the high of 8 Jan’s “Bearish Engulfing” pattern.

Source: RHB Securities Research - 18 Feb 2020