RHB Retail Research

COMEX Gold: Bullish Momentum Continues

Publish date: Tue, 09 Nov 2021, 08:51 AM
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RHB Retail Research

Maintain long positions. The COMEX Gold saw the bullish momentum extend yesterday, adding USD11.20 to settle at USD1,828. On the first trading session of the week, the commodity started off at USD1,820.60. Despite mild profit taking dragging the commodity to the day’s low of USD1,813.80, it rebounded strongly during the US trading session to reach the day’s high of USD1,828.30 before closing stronger at USD1,828. The latest session affirmed that the bulls are in control and on track to test the USD1,836.90 resistance level. Breaching the threshold will see the commodity negate the Bearish Marubozu formed on 7 Sep, but we think the bulls may face stiff resistance. In the event the COMEX Gold retraces for consolidation, the USD1,800 level will provide strong support. With the bullish momentum intact, we maintain our positive trading bias.

Traders should keep to long positions initiated at USD1,793.50, ie the closing level of 4 Nov. To mitigate trading risks, the stop-loss level is fixed at USD1,775.

The nearest support is estalished at the USD1,800 round number, followed by USD1,783 (26 Oct’s low). On the upside, the immediate resistance is eyed at USD1,836.90 – 3 Sep’s high – followed by the neckline USD1,855.60.

Source: RHB Securities Research - 9 Nov 2021

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