Maintain long positions. The COMEX Gold crossed above the 20-day SMA line last Friday, gaining USD9.20 to settle at USD1,741.70. It started the session at USD1,733.70 and found its footing near the USD1,727.10 low, before climbing to the session’s USD1,746.10 high. Despite selling pressure during the US trading hours, the commodity closed stronger at USD1,741.70. With the RSI indicator pointing upwards – suggesting that bullish momentum, which started on 8 Mar, remains intact – the commodity may move north, towards the USD1,754.20 and USD1,765 levels. If it breaches USD1,754.20, we should see the formation of a “higher high”, and the current counter rebound may extend further. Unless a new “lower low” is formed, or the stop-loss level is breached, we will stick to our positive trading bias.

We recommend traders keep to the long positions initiated at USD1,729.20, or the closing level of 15 Mar. For risk management purposes, the stop-loss is placed at USD1,715.

The immediate support is revised to 16 Mar’s low of USD1,724.40, followed by USD1,716.80. Towards the upside, the immediate resistance is pegged to 18 Mar’s high of USD1,754.20, followed by USD1,765.

Source: RHB Securities Research - 22 Mar 2021