The COMEX Gold broke past the USD1,950 resistance level on strong momentum, surging US$27.90 to settle at USD1,976.10. It gapped up to open at US$1,957.40 yesterday, RHB Research said.
Strong demand emerged during the US session, with the commodity rising to the session’s high of US$1,982.70 before closing at USD1,976.10.
The long bullish candlestick reaffirms that the bulls are now in control. Riding on the momentum, the commodity may travel towards the psychological resistance level at US$2,000.
Meanwhile, immediate support has been established at US$1,950 to provide a downside buffer if the COMEX Gold experiences profit-taking in the coming sessions. The commodity is moving upwards on “higher highs” and “higher lows” – hence, we keep our positive trading bias. Traders should retain the long positions initiated at US$1,818.50 or the closing level of 11 January.
To minimise trading risks, the trailing-stop is fixed at USD1,900. The nearest support is revised to USD1,950, followed by USD1,918, or 29 Mar’s close. On the upside, the immediate resistance is eyed at US$1,985, followed by US$2,000.
