Maintain long positions. The COMEX Gold is continuing the uptrend movement, edging higher above the USD1,927 immediate resistance level. During the latest session,the commodity gapped up to open at USD1,935 but, as there was a lack of follow-through interest, it retraced towards a day low at USD1,923.80 and closed at USD1,928.90. Despite a weak intraday movement, overall we still observe a series of higher high and low patterns that started since the low of USD1,851, indicating that the bullish momentum is still intact. Next, we need to witness the COMEX Gold trading above the 50-day SMA line to negate the bearish crossover of the two moving averages: The 20-day and 50-day SMA lines. For now, we are keeping to our positive trading bias.

We recommend traders maintain long positions. We initiated these positions at USD1,903.20, ie the closing level of 29 Sep. For risk-management purposes, stop-loss can be set at the USD1,880 mark.

The immediate support level is maintained at USD1,880, or the low of 29 Sep. This is followed by USD1,851, which was 28 Sep’s low. Meanwhile, the immediate resistance is maintained at the USD1,927 and followed by USD1,968.20, ie the high of 18 Sep.

Source: RHB Securities Research - 13 Oct 2020