Maintain long positions. The COMEX Gold failed to see a follow through of the bullish momentum, retracing USD11.30 to settle at USD1,736.30. The commodity started Wednesday’s session at USD1,746.40 and managed to test the intraday high at USD1,750.70. However, during the US trading hours, selling pressure emerged to drag the COMEX Gold towards the USD1,732.30 session low. It last traded at UD1,736.30. As mentioned previously, it is crucial for the commodity to keep trading above the 20-day SMA line to retain the counter-trend rebound. Falling below the moving average may ignite further selling pressure. With the RSI dropping below the 50% threshold – showing a negative momentum emerging – we are cautious of the possibility of the USD1,728 support level being tested. However, as long as the stop loss stays intact, we maintain our positive trading bias.

We recommend traders maintain long positions initiated at USD1,715.60 on 31 Mar. For risk-management purposes, the trailing stop remains at USD1,725.

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

Source: RHB Securities Research - 15 Apr 2021