Maintain long positions as the precious metal hits a multi-year high. The COMEX Gold’s positive momentum continued to extend in the latest session which saw 8 Jan’s “Bearish Engulfing” formation invalidated. Trading ranged between USD1,606.60 and USD1,626.50, before settling USD8.70 higher at USD,1620.50 – marginally above the said “Bearish Engulfing” high of USD1,619.80. While the recent sessions’ price advancements are now flashing out an oversold RSI reading, price actions are still suggesting the positive price trajectory could still be extending. Hence, we are keeping our positive trading bias.

As the uptrend is not showing exhaustion, 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 USD1,615, derived from the latest candle. This is followed by the USD1,600 round figure. Moving up, the immediate resistance is now set at the USD1,630 threshold. This is followed by USD1,650.

Source: RHB Securities Research - 21 Feb 2020