Maintain long positions, as the bulls are charging ahead. The COMEX Gold formed a third consecutive white candle to settle USD17.20 stronger at USD1,603.60 – marginally above the previous immediate resistance of USD1,600. Trading took place between USD1,584.80 and USD1,608.20. The positive performance is also further supported by the crossing of the RSI resistance line, albeit marginally. In the absence of price exhaustion signals, we are keeping to our positive trading bias.

As the upward move is still showing signs of extending, we maintain our long recommendation. We initiated these at USD1,586.40, ie the closing level of 13 Feb. For risk-management purposes, a stop-loss can be placed at the breakeven mark.

The immediate support is revised to USD1,590, which was derived from the latest candle. This is followed by USD1,575, or 13 Feb’s candle. Moving up, the immediate resistance is now set at USD1,619.60, ie the high of 8 Jan’s “Bearish Engulfing” pattern. This is followed by the USD1,630 threshold.

Source: RHB Securities Research - 19 Feb 2020