Initiate long positions as the bulls are signalling a return. The COMEX experienced a sharp gain in the latest session, ending USD49.40 stronger at USD1,648.90 – thereby crossing above our previous resistance points of USD1,600 and USD1,616.50. Looking at the latest three sessions’ price performance, ie the strong price reactions from near the 50-day SMA line, chances are high that the commodity’s correction phase completed and may be resuming its uptrend. Hence, we revise our trading bias to positive.

Our previous short positions initiated at USD1,571.80, the closing level of 28 Feb, were closed out at the latest session at the USD1,600 mark. On the bias the uptrend is resuming, we initiate long positions at the latest closing. For risk management purposes, a stop-loss can be placed below the USD1,616 mark.

We revised the immediate support to USD1,631, followed by USD1,616 – both are price points from the latest candle. Meanwhile, resistance levels are pegged at USD1,665, derived from 27 Feb’s candle, followed by USD1,680 – the price traded on 25 Feb.

Source: RHB Securities Research - 4 Mar 2020