Keep riding the bulls, maintain long positions. Last Friday was a bullish session, as the WTI Crude posted a USD0.82 increase to USD74.15. It charted a white candle after having oscillated between a low of USD72.93 pts and high of USD74.46 pts. This positive movement has extended the climb, and the commodity is now trading at its latest high since 2014. The bullish bias we detected in the reversal “Bullish Harami” candlestick pattern on 5 Jun continues to exert itself and, as we do not see any strong selling activities, this implies a positive outlook. Overall, out bullish view remains intact.

The daily chart suggests the bulls are in firm control. As such, it is best that traders maintain long positions. In order to lock in part of the trading profit, we recommend setting a trailing-stop below the USD69.56 threshold. For the record, we initially made the long call on 25 Jun. This was after the strong upside development above the USD67.16 mark.

We set the immediate support at USD72.83, which was obtained from the high of 22 May. This is followed by the USD69.56 support threshold, ie the high of 17 Apr. Towards the upside, the immediate resistance is pegged at USD75.84, which was the low of 4 Nov 2014. The following resistance is set at the USD77.83 mark, or the high of 21 Nov 2014.

Source: RHB Securities Research - 2 Jul 2018