Maintain long positions. The COMEX Gold extended the upward movement on strong momentum, rising USD16.60 to settle at USD1,758.20. The precious metal started at USD1,738.60 yesterday and fell to a session low of USD1,733.60. After it found this low near the 20-day SMA line, strong demand lifted it towards the USD1,759.40 session high – it last traded at USD1,758.20. As mentioned in our previous note, the COMEX Gold may climb further to test the overhead resistance near the 50-day SMA line. If it manages to cross the latter line, this may show early signs that the overall trend is changing towards an uptrend. Based on the recent price action, the COMEX Gold has been moving upward and forming a “higher high” pattern. With the bulls still in the driver’s seat, the recent counter-trend rebound stays intact. Hence, we maintain our positive trading bias.

We recommend traders stick to the long positions initiated at USD1,715.60 on 31 Mar. For risk-management purposes, the stop loss is raised to USD1,725.

The immediate support is revised to the USD1,745 whole number and followed by USD1,728. Towards the upside, the nearest resistance is revised to the USD1,765 whole number, followed by USD1,780.

Source: RHB Securities Research - 9 Apr 2021