The COMEX Gold resorted to consolidation and fell USD12.80 to close at USD2,431.60. RHB noted that the commodity initially began trading at USD2,451.70. It then retraced to the USD2,421.80 day's low before the close – printing a fresh "lower high" bearish candlestick. The price action, coupled with the RSI turning lower, shows the bullish momentum is taking a long pause.
RHB said the commodity may aim to move sideways and find support near the USD2,400 level. Since the 50-day SMA line is still trending upwards, expect this medium-term moving average line to provide additional support for the commodity. On the downside, stronger support is expected to emerge at the USD2,350 level. As long as the commodity stays above this USD2,350 threshold, the technical setup should remain bullish. For now, the house said it will hold on to the positive trading bias.
The house advices traders to keep the long positions initiated at USD2,421.90, ie the close of 11 Jul. To minimise the trading risks, the stop-loss threshold is set at USD2,350. The immediate support is seen at USD2,400, followed by USD2,350. Meanwhile, the immediate resistance remains unchanged at USD2,477 – the high of 20 May – and followed by the USD2,600 level.