RHB Retail Research

COMEX Gold - Bulls Still in Control

Publish date: Tue, 22 Feb 2022, 10:08 AM
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RHB Retail Research

Maintain long positions. Based on the weekly chart, we observe that the COMEX Gold remains in an upward trajectory, and is eyeing the USD1,950 resistance level. During the week that ended on 18 Feb, the commodity managed to surpass the previous resistance level of USD1,879.50 to form a fresh “higher high” bullish candlestick pattern. The 13-week SMA line is also trending higher, indicating that the uptrend is getting firmer and that positive momentum is still in play. However, if the commodity’s momentum is weakened by profit-taking, we expect the resistance-turned-support level of USD1,851.90 to provide a strong downside buffer. As the bulls remain in control, we retain our bullish trading bias.

Traders should keep the long positions initiated at USD1,818.50, or the closing level of 11 Jan. For management of trading risks, the trailing-stop is set at USD1,851.90.

As shown in the daily chart, the immediate support remains at USD1,879.50 – 16 Nov 2021’s high – followed by USD1,851.90. The nearest resistance is projected at USD1,950, followed by the USD2,000 whole number.

Source: RHB Securities Research - 22 Feb 2022

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