RHB Retail Research

COMEX Gold: Strong Profit-Taking

Publish date: Wed, 16 Feb 2022, 05:39 PM
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RHB Retail Research

Maintain long positions. The COMEX Gold reversed its direction yesterday after its recent rally, falling USD13.20 to settle at USD1,856.20. The commodity opened stronger at USD1,873.80 and established its intraday high at USD1,881.60. Strong selling pressure emerged ahead of the European trading session, which dragged the COMEX Gold to the day’s low of USD1,845.40. It then bounced moderately towards the close. The negative price action has nullified the bulls from continuing the momentum, which is likely to see the commodity falling further towards the USD1,830 next support level, ie still above the 20-day average line. Until the trailingstop mark is triggered, we stick to our bullish trading bias.

We recommend traders stick with the long positions initiated at USD1,818.50 or the closing level of 11 Jan. To manage the trading risks, the trailing-stop threshold is introduced at USD1,830.

The immediate support is seen at USD1,851.90 – 14 Feb’s low – and followed by the USD1,830 whole number. On the upside, the first resistance is at USD1,879.50 – 16 Nov 2021’s high – and followed by the USD1,900 psychological level.

Source: RHB Securities Research - 16 Feb 2022

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