Maintain long positions. The COMEX Gold saw a heavy sell-off since 13 Oct, down USD24.90 to close at USD1,904.60. The precious metal started the session at USD1,927.40. After briefly trading at a session high of USD1,929.40, it dived USD35.20 to a session low of USD1,894.20. Towards the late session, it recouped USD10.40 to close near a day low at USD1,904.60. After a strong price action displayed on Wednesday, yesterday was a disappointing session with no follow-through action by the bulls. However, since the support levels are not breached, the uptrend might pick up again after consolidation near the 20-day SMA line. We are keeping our positive trading bias.

We recommend traders to maintain long positions. We initiated these at USD1,903.20, or the closing level of 29 Sep. For risk-management purposes, a stop-loss is set at USD1,892.70, which was the low of 15 Oct.

The immediate support is marked at USD1,892.70, followed by USD1,877.10, which was 7 Oct’s low. On the upside, the next resistance point is eyed at USD1,936.00, followed by USD1,968.20, or the high of 18 Sep.

Source: RHB Securities Research - 23 Oct 2020