Maintain short positions as the bulls failed to sustain above the 200-day SMA line. The COMEX Gold failed to hold on to the 200-day SMA line in the latest session – after it recaptured the said line in the prior session. Trading ranged between USD1,476.00 and USD1,548.90, before closing USD47.50 lower at USD1,480.60, also below the USD1,500 level. As the precious metal again fell below the SMA line, this means there was no positive follow-up from the prior session’s sharp rebound. Premised on this, we are keeping our negative trading bias.

As the bulls failed to signal a return, we maintain our recommendation that traders stay in short positions. We initiated these at USD1,593.20, or the closing level of 12 Mar. For risk-management purposes, a stop-loss can be placed above the USD1,556.40 mark.

We revised the immediate support to USD1,468.60, the low of 18 Mar. This is followed by USD1,453.00, the low of 16 Mar. Meanwhile, the immediate resistance is pegged at the USD1,500 round figure, followed by USD1,525 – derived from the latest candle.

Source: RHB Securities Research - 19 Mar 2020