Maintain long positions. After climbing back into USD1,800 territory, the COMEX Gold saw the bullish momentum extended last Friday, jumping USD15.60 to settle at USD1,831.30. It started Friday’s session flat at USD1,815.40. After briefly touching the USD1,813.40 day low, the bullish momentum lifted it towards the day high of USD1,844.60 during the European trading hours. Mild profit-taking during the late session saw the COMEX Gold pare the earlier gains to conclude the session at USD1,831.30. From the long upper shadow, it showed the selling pressure emerging near the USD1,840 resistance level. Since the commodity closed with a solid or white body, this indicates the bulls remain in the driver’s seat. As long as it continues to trade above USD1,805, the COMEX Gold will continue to be on an upward trajectory. As such, we are sticking to our positive trading bias.

We recommend traders stick to the long positions initiated at USD1,791.80, or the closing level of 3 May. For risk management purposes, the trailing-stop level is raised to USD1,805.

The immediate support is revised to USD1,815 and followed by the USD1,805 whole number. Towards the upside, the nearest resistance is projected at USD1,840, followed by the USD1,850 round figure.

Source: RHB Securities Research - 10 May 2021