Maintain long positions, given that the bulls are still dominating market sentiment. At yesterday’s close, the WTI Crude posted a USD2.45 gain to close at USD70.53. It left a white candle that breached firmly above the previous USD69.56 resistance mark, which implies that the session was led by the buyers. Presently, the bulls are dominating the market. As the 14-day RSI indicator is currently hovering above the 50-neutral level at 61.75 pts, this implies market strength is encouraging. In addition, the fact that the commodity is now trading above the aforementioned 50-day SMA line points towards a positive outlook. This enhances our upside view.

The daily chart shows that the ongoing bullish bias is still intact. Thus, we keep recommending traders to stay in long positions. In order to minimise the downside risk, it is best to set a stop-loss below the USD64.24 threshold. For the record, our initial long call was triggered on 25 Jun. This was after the strong buying activities that sent the WTI Crude’s price above the USD67.16 mark.

We revise the immediate support to USD69.56, located at the high of 17 Apr. If this level is taken out, the following support is found at USD67.16 mark, ie 14 Jan’s high. On the flip side, our immediate resistance is now at the USD72.83 threshold, obtained from the high of 22 May. This is followed by the USD75.84 resistance mark, which was the low of 4 Nov 2014.

Source: RHB Securities Research - 27 Jun 2018