Maintain long positions. The COMEX Gold continued to extend its rebound after testing the USD1,741.90 immediate support during the prior session. At the close, it settled at USD1,765.60 – indicating a gain of USD7.70. The positive performance continues to signal that the commodity’s uptrend remains firmly in place – this is because 18 May’s “Bearish Engulfing” formation is still not confirmed. Towards the downside, a breach of said immediate support should confirm the aforementioned negative formation. It could also open the door for further retracements. For now, we stick to our positive trading bias.

As the bulls are still holding up, we advise traders to stay in long positions. We initiated these at USD1,752.10, or the closing level of 14 May. For risk-management purposes, a stop-loss can now be placed below the USD1,741.90 mark.

The immediate support is eyed at USD1,741.90, or the low of 18 May. This is followed by USD1,725, ie the price point of 13 May. Moving up, the immediate resistance is set at USD1,788.80 – the high of 14 Apr – and followed by the USD1,800 round figure.

Source: RHB Securities Research - 21 May 2020