The bullish bias may still be extended, stay in long positions. The WTI Crude inched up USD2.23 to USD72.76 last night. The commodity tested the USD72.83 mark and formed a long white candle after oscillating between a low of USD70.56 and high of USD73.06. This indicates that the buyers were in firm control of the session. Presently, we see the WTI Crude continuing to trade steadily above the 50-day SMA line. Technically speaking, market sentiment is encouraging, and the bullish bias is likely to be extended in coming sessions. This is supported by the 14-day RSI indicator hovering below the 70-pt overbought level at 67.23 pts, which suggests that there is still room for upside movement.

In line with our positive expectation, it is best that traders maintain their long positions. In order to secure part of the trading profits, we recommend setting a new trailing-stop below the USD69.56 mark. This follows our long call on 25 Jun, after a strong upside development above the USD67.16 threshold.

The immediate support stays at USD69.56, obtained from the high of 17 Apr. For the next support, look to USD67.16, located at the high of 14 Jan. Towards the upside, we keep the immediate resistance at USD72.83, which was the high of 22 May. If this level is taken out, the following resistance is found at the USD75.84 threshold, or the low of 4 Nov 2014.

Source: RHB Securities Research - 28 Jun 2018