RHB Investment Bank (RHB IB) today provides insight into the price movement of Commodity Exchange Inc (COMEX) Gold, which managed to recoup $13.20 on Monday to close at $2,344.40, halting the commodity’s recent downside movement.
The commodity’s price began trading at $2,333.50.
At one point during the session, it rose to the day’s high of $2,347.50, closing near the high at $2,344.40 and charting a bullish candlestick.
The latest price action showed signs of bullish momentum, with the commodity looking to climb above the 50-day SMA line.
As the COMEX Gold’s price remains below the medium-term moving average line, the bears still retain the technical advantage. However, there is a possibility of a breakout above the 50-day SMA line, which could negate the Bearish Engulfing pattern observed on June 21.
For the immediate session, the commodity’s price is likely to face pressure from the short-term moving average line, with the potential for further downside movement.
During this time, RHB IB maintains a negative trading bias.
Traders are advised to stick with short positions initiated at $2,325 or the close of June 7.
To mitigate trading risks, the stop-loss threshold is fixed at $2,400.
The immediate support is established at the aforementioned $2,300, with lower support at $2,200.
On the upside, the nearest resistance is seen at $2,400, followed by $2,477, the high of May 20.
