RHB Investment Bank Bhd (RHB Research) has maintained its recommendation to hold long positions on COMEX Gold, as the commodity extended its correction on Tuesday, dropping US$8 to close at US$2,662.
Gold opened at US$2,670.20 and traded within the range of US$2,675.80 to US$2,646.10 before settling at US$2,662. The day's trading formed a bearish candlestick with a long lower shadow, signalling that support remains intact despite selling pressure. Analysts noted that the precious metal may see a rebound near the US$2,640 support level, given the ongoing bullish technical setup.
Both the 20- and 50-day Simple Moving Average (SMA) lines are currently acting as resistance. A move above these lines would confirm the resumption of an upward trend. However, as long as gold remains above the US$2,640 support level, the bullish bias remains valid.
RHB Research advised traders to maintain long positions initiated at the close of Nov 19, at US$2,631. To manage trading risks, the stop-loss point is set at US$2,640.
The immediate support for COMEX Gold is identified at US$2,640, with further support at US$2,550. On the upside, immediate resistance is pegged at US$2,800, followed by US$2,900.
