Best to stay in long positions as the uptrend has not reached its limit yet. Last night, the WTI Crude posted a USD0.20 gain to close at USD74.14. A “Doji” candlestick pattern was formed after it hovered between a low of USD72.73 and high of USD75.27 – an indication that the session was an indecisive one. Presently, we believe that the bulls are still in firm control of market sentiment, as no strong downside development sighted. We also highlight that the 50-day SMA line rose USD0.11 to USD68.84, which points to a positive outlook. This strengthens our upside view.

The daily chart above suggests that the upside movement has not reached its limit yet. As such, we maintain our long recommendation. In order to secure part of the trading profits, we advise traders to set a trailing-stop below the USD69.56 threshold. For the record, we made the long call on 25 Jun, after the WTI Crude’s price successfully breached above the USD67.16 mark.

We set the immediate support at USD72.83, the high of 22 May. This is followed by the USD69.56 support threshold, or 17 Apr’s high. Towards the upside, the immediate resistance is maintained at USD75.84, located at the low of 4 Nov 2014. If this level is taken out, the following resistance if found at USD77.83, or the high of 21 Nov 2014.

Source: RHB Securities Research - 4 Jul 2018