Maintain short positions. The COMEX Gold saw a neutral session on Tuesday, inching USD2.80 lower to settle at USD1,891.30. The bulls and bears were both at equal strength yesterday. The precious metal started the session flat at USD1,894.30, before rising to the day high of USD1,998.90 – breaching the resistance level of USD1894.90. Again, just when the commodity touched the 20-day SMA line, selling pressure emerged and the bears brought the commodity below the resistance level, to as low as USD1882.70. The bulls buying near the low pushed the commodity higher, to close at USD1,891.30. From the price action, the 20-day SMA line is still blocking the precious metal from going up. With the RSI trend below the 50% threshold, the bullish momentum is weak. It will need more time to build an interim base. As such, we maintain our negative trading bias.

We recommend traders maintain short positions. We initiated these at USD1,860.60, or 9 Nov’s close. For riskmanagement purposes, the stop-loss can be set above USD1,895.40, or the low of 3 Nov.

The downside support is marked at USD1,860.20 and followed by USD1,851, which was 24 Sep’s low. On the upside, the immediate resistance is pegged at USD1,894.90, followed by USD1,924, which was 4 Nov’s high.

Source: RHB Securities Research - 18 Nov 2020