Maintain long positions. Tracking the bullish sentiment of its peers, the COMEX Gold climbed above the 50-day SMA line, jumping USD13.60 to settle at USD1,863.90. The precious metal gapped USD14.70 yesterday to open at USD1,865. After a positive opening, it fell to the day low at USD1,851.70 before rebounding towards the USD1,876 day high. It last traded at USD1,863.90. Within the next two trading sessions, the COMEX Gold has to trade above the 20-day SMA line to mitigate the Bearish Crossover of the 20- and 50-day SMA lines. If it can cross above the resistance pegged at USD1,887.30, we expect the precious metal to retest the resistance at USD1,900. So far, we deem the uptrend, which started since the Bullish Crossover, as still intact and that the recent rebound is not over yet. Premised on this, we maintain our positive trading bias.

We recommend traders maintain their long positions, which was initiated at USD1,870.20, or the closing level of 20 Jan. For risk-management purposes, a stop loss can be placed at the USD1,842 level.

The immediate support is marked at USD1,842 and followed by the lower support at USD1,828. Towards the upside, the nearest resistance is pegged at 29 Dec 2020’s closing level of USD1,887.30 and followed by the USD1,900 threshold.

Source: RHB Securities Research - 2 Feb 2021