Traders are advised to stay in long positions in line with the ongoing bullish bias. The WTI Crude ended at USD74.11 and registered a USD0.26 gain. A “Doji” candlestick pattern was formed, which implies that the session was an indecisive one. Presently, we do not see any strong correction. This implies that the bullish bias we detected in 5 Jun’s “Bullish Harami” candlestick pattern remains in play. In addition, we highlight that the commodity is trading firmly above the 50-day SMA line. Technically speaking, this implies a positive outlook, thereby enhancing our bullish view.

The fact that no strong selling activities observed in the chart above implies that market sentiment remains encouraging. It is best that traders maintain long positions with a trailing-stop set below the USD69.56 threshold, so that part of the trading profits are locked. This is in line with our initial long call on 25 Jun, after the WTI Crude’s price breached above USD67.16.

Towards the downside, we set the immediate support at USD72.83, obtained from the high of 22 May. In the event that this level is taken out, our next support is pegged at USD69.56, which was the high of 17 Apr. On the flip side, we set the immediate resistance at USD75.84, which is located at 4 Nov 2014’s low. This is followed by the USD77.83 resistance threshold, or the high of 21 Nov 2014.

Source: RHB Securities Research - 11 Jul 2018