Bullish bias is still exerting itself, keep in long positions. Last night, the WTI Crude ended at USD73.85 and posted a USD0.05 gain. It charted a “Doji” candlestick pattern after hovering between a low of USD72.99 and high of USD74.28. Presently, we maintain our positive view, given that no strong downside movement has been sighted yet. At this juncture, the bulls are still in control of market sentiment. Moreover, the 14-day RSI indicator continues to hover above the 50-pt neutral level at 65.83 pts. This indicates that market sentiment remains encouraging, thereby enhancing our upside view.

We believe that more opportunities lean towards the buyers. As such, there is no change to our long call. In order to secure part of the trading profits, traders are advised to set a trailing-stop below the USD69.56 threshold. For the record, we initially made the long recommendation on 25 Jun, following a firm breach above the USD67.16 mark.

We keep the immediate support at USD72.83, which was the high of 22 May. If this level is taken out, the following support is found at USD69.56, obtained from the high of 17 Apr. Towards the upside, the immediate resistance is seen at USD75.84, or the low of 4 Nov 2014. For the next resistance, look to USD77.83, ie 21 Nov 2014’s high.

Source: RHB Securities Research - 10 Jul 2018