Uptrend continues to extend; maintain long positions. Despite not being able to hold on to most of its intraday gains, the COMEX Gold still added USD4.10 to close at USD1,676.10. At one point, it tested the resistance of USD1,691.70 with an intraday high of USD1,696.50. While it was not able to close above the said resistance point, we are not seeing this as a possible price rejection either. Overall, we still see the precious metal upward move, which has yet to flash out an overbought RSI reading, as still firmly in place. Maintain our positive trading bias.

As the positive price trajectory is still showing signs of extending, 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 maintained at USD1,658.60, which was derived from 4 Mar’s candle. This is followed by USD1,640, or 5 Mar’s price point. Towards the upside, the immediate resistance is pegged at USD1,691.70, 24 Feb’s high, followed by the USD1,700 round figure.

Source: RHB Securities Research - 9 Mar 2020