RHB Investment Bank Bhd (RHB Research) has maintained its recommendation for short positions on COMEX Gold, despite a fresh bullish candlestick formation on Tuesday. The researc house noted the commodity gained US$22.90 to settle at US$2,641, supported by a session high of US$2,642.

RHB Research highlighted that while the recent price action and an upward trend in the Relative Strength Index (RSI) indicate strengthening bullish momentum, the broader bearish setup remains intact. Resistance from the 20-day and 50-day simple moving average (SMA) lines continues to cap upward movement, sustaining the downward pressure on gold prices.

According to the research house, any sustained bullish movement could push the commodity above the SMA lines, potentially testing the US$2,700 resistance level. However, they emphasised that the negative trading bias will hold unless COMEX Gold closes above the critical US$2,700 threshold.

Traders are advised to maintain the short positions initiated on Dec 19, at US$2,608.10. RHB Research set the stop-loss point at US$2,700 to mitigate risks.

Support levels for COMEX Gold are projected at US$2,550 and US$2,450, while the nearest resistance levels stand at US$2,700 and US$2,800.

The research house also cautioned that while current bullish sentiment may be gaining traction, the overarching bearish framework remains dominant unless there is a decisive breach of resistance levels.