The COMEX Gold underwent mild profit-takings after breaking past the USD2,300 threshold. It retraced USD6.50 during Thursday’s session to close at USD2,308.50. The commodity initially began trading at USD2,321. It fell to the USD2,298.70 day’s low before closing at USD2,308.50.
RHB Investment in its report said the latest bearish candlestick shows profit-taking activities are in progress. Meanwhile, the RSI at 79% level shows the commodity is overbought. There is high possibility that the selling pressure will be extended. The COMEX Gold may pull back towards the immediate support at the USD2,250 level. Despite momentum slowing down, the commodity still trades above the 20-day SMA line. Both the 20- and 50-day SMA lines continue trending higher – lending support to the technical structure. As long as the commodity stays above the USD2,200 level, the bulls still possess technical
advantage. At this juncture, we still retain the positive trading bias.
The house advised traders to hold on to the long positions initiated at the close of 1 Mar, ie USD2,095.70. To minimise the trading risks, the trailing-stop threshold is fixed at USD2,200. The nearest support is marked at USD2,250, followed by USD2,200. On the upside, the immediate resistance remains unchanged at USD2,400, followed by MYR2,500.
