RHB said the COMEX Gold attempted to stage a rebound from the 20-day SMA line last Friday, rising USD28 and closing higher at USD2,427.90. The commodity initially started trading at USD2,409.90. It then rose to the USD2,436.70 intraday high and closed at USD2,427.90.
RHB believes this latest price action affirmed that the 20-day SMA line is acting as a support. The bulls will possess the technical advantage should the COMEX Gold trade above the 20-day SMA line. Riding on the renewed momentum, the commodity is setting its sights to crossing above the USD2,477 immediate resistance. Meanwhile, RHB expects strong support to establish at the USD2,350 level. As long as the yellow metal stay above this threshold, the house hold on to the positive trading bias.
The hosue advises traders to keep to the long positions initiated at the close of 11 Jul, ie USD2,421.90. To minimise the trading risks, the stop-loss threshold is set at USD2,350. The nearest support is marked at the aforementioned USD2,350 and followed by the USD2,300 level. On the upside, the first resistance is pegged at USD2,477 – the high of 20 May – and followed by the USD2,600 mark.