Maintain long positions. The COMEX Gold reclaimed the 20-day SMA line, rising USD14.00 to settle stronger at USD1,821.80. The commodity started off Monday’s session at USD1,808. After moving sideways for most of the session, it climbed to touch the USD1,824.60 level before closing at USD1,821.80. The yellow metal has printed a long bullish candlestick, negating the Bearish Marubozu pattern formed on 27 Jan. The latest price action reaffirms that the bulls are in control of the trend, and are getting stronger above the USD1,800 level. With the renewed momentum, the commodity may see follow-through price action to test the USD1,832 immediate resistance level. For now, we keep our positive trading bias.

We recommend traders stay with the long positions initiated at USD1,818.50, or the closing level of 11 Jan. To manage the trading risks, the stop-loss is adjusted to USD1,785 from USD1,775.

The immediate support is shifted higher to USD1,800, followed by the USD1,785 whole number. Conversely, the immediate resistance is eyed at USD1,832 – 26 Jan’s close – followed by USD1,856.70, or the recent high of 25 Jan.

Source: RHB Securities Research - 8 Feb 2022