Maintain long positions. The COMEX Gold experienced a slight bullish momentum yesterday, rebounding USD7.80 to settle at USD1,778.40. It started the session at USD1,770.50 but having faced mild selling pressure, it stayed near the session’s low of USD1,763.50. Over the US trading hour, buying pressure emerged to lift the commodity towards the session’s high of USD1,780.80 and close at USD1,778.40. The commodity maintains its uptrend posture by displaying a “higher highs and higher lows” pattern. As long as it stays above the USD1,750 level, we may see a crossover of the 20- and 50-day SMA lines in the coming sessions. This will strengthen the upward movement and re-test the upside resistance at USD1,790.40. Hence, we keep to 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 USD1,760.

The immediate support is marked at USD1,760, followed by USD1,750. Towards the upside, the nearest resistance is pegged at 19 Apr’s high of USD1,790.40, and followed by USD1,805.

Source: RHB Securities Research - 21 Apr 2021