Maintain long positions. The COMEX Gold saw bullish momentum emerging yesterday, rising USD14.90 to settle at USD1,747.60, as it rebounded above the 20-day SMA line. The commodity started Tuesday’s session at USD1,732.20. During the Asian trading hours, it fell towards the USD1,723.20 session low, but the tide changed after the London trading hours started – it rose towards the session high of USD1,749.50 and settled at USD1,747.60. As mentioned previously, it is crucial for the COMEX Gold to stay above the 20-day SMA line to keep the counter-trend rebound movement intact. The momentum may extend further to test the overhead resistance of the 50-day SMA line. If it manages to cross the USD1,759.40 resistance, the commodity may signal an uptrend formation. Since the bullish momentum is driving it higher, we maintain our positive trading bias.

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

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

Source: RHB Securities Research - 14 Apr 2021