Long call stays intact, as the bullish bias is still exerting itself. The WTI Crude ended at USD73.45 last night and posted a USD0.69 increase. It charted a white candle that breached above the previous USD72.83 resistance. This positive movement extended the climb and sent the commodity to its newest multi-year high since 2014. Technically speaking, the bullish bias in the appearance of 5 Jun’s reversal “Bullish Harami” candlestick pattern remains firmly in play. As the 14-day RSI indicator has not yet hit the 70-pt overbought level – it is now at 68.60 pts – this suggests more room for the upside movement to extend. Overall, our positive view remains intact.

In line with the ongoing strong upside movement, we believe more opportunities still lean towards the buyers. As such, we maintain our long recommendation, with a trailing-stop set below the USD69.56 threshold. This is in order to lock in part of the trading profits. Do note that our long call was triggered above the USD67.16 mark on 25 Jun.

Our immediate support is now set at USD72.83, or the high of 22 May. If this level is taken out, the following support is found at USD69.56, which was the high of 17 Apr. On the flip side, we set the immediate resistance at the USD75.84 mark, or the low of 4 Nov 2014. This is followed by the USD77.83 resistance, which was derived from the high of 21 Nov 2014.

Source: RHB Securities Research - 29 Jun 2018