Maintain long positions. The COMEX Gold saw some profit-taking acitivities last Friday, falling USD13.40 to settle at USD1,744.80. The precious metal started the session at USD1,756.50 but, after touching the USD1,758.20 session high, it fell to a session low of USD1,730.80. During the US trading hours, the COMEX Gold recouped some losses and rebounded higher to close at USD1,744.80. From the price action, we see buying interest emerging near the 20-day SMA line, indicating that the counter-trend rebound phase remains intact. With the RSI moving above the 50% threshold, the bullish momentum may resume after the mild correction. As the bulls may look to test the overhead resistance of the 50-day SMA line, we keep to our positive trading bias.

We recommend traders maintain long positions, which were initiated at USD1,715.60 on 31 Mar. For riskmanagement purposes, the stop loss is set at USD1,725.

The immediate support is revised to 5 Apr’s high of USD1,734.40 and followed by the USD1,728 whole number. Towards the upside, the nearest resistance is revised to 8 Apr’s high of USD1,759.40, followed by the USD1,765 whole number.

Source: RHB Securities Research - 12 Apr 2021