Maintain long positions. The COMEX Gold momentum picked up yesterday, rebouded USD7 higher to settle at USD1,877.30. Yesterday, the commodity opened lower at USD1,865.60. Despite a weak opening, buying pressure were seen near the day low at USD1,860.90, pushing the commodity to test the day high at USD1,883.70 and closed at USD1,877.30. From the latets price action, it showed that the bulls are not giving up yet. There is stong buying interest near the support level USD1,859. If the precious metal could rebound above the 50-day SMA line in coming sessios, we shall see a new uptrend channel forming, or a series of higher highs and higher lows. Meanwhile, the 20-day SMA line is curving higher, showing immediate term the trend still tends to be bullish. As such, we will stick to positive trading bias.

We recommend traders to maintain long positions. We initiated long positions at USD1,859.10 or the closing level of 16 Dec. For risk-management purposes, a stop loss can be set below USD1,848 level.

Downside support remained at recent low of USD1,859, followed by USD1,820. On the upside, the immediate resistance is pegged at the high of 18 Dec ie USD1,895.70, and followed by the high of 3 Nov ie. USD1,912.20.

Source: RHB Securities Research - 24 Dec 2020