Maintain long positions, as the bulls continue to show strength. The COMEX Gold recently formed a white candle, closing at USD1,672 off a USD24.80 gain. The high was reached at USD1,679.20. The previous USD1,665 resistance level was also crossed. The positive performance: The continuation from the strong upward move from near the 50-day SMA line after a brief pause during the prior session. While the ongoing upward move from said SMA line has been very sharp, the RSI has yet to reach an overbought reading. Premised on this, we are keeping our positive trading bias.

On the observation that the bulls are having a clear control over the price trend, we recommend traders stay in long positions. These were initiated at USD1,648.90, or the closing level of 3 Mar. For risk-management purposes, a stop-loss can be placed at the breakeven level.

The immediate support is revised to USD1,658.60, which was derived from 4 Mar’s candle. This is followed by USD1,640, or 5 Mar’s price point. Moving up, the immediate resistance is now eyed at USD1,691.70, 24 Feb’s high, followed by the USD1,700 round figure.

Source: RHB Securities Research - 6 Mar 2020