Maintain long positions. The WTI Crude ended the latest session weaker by USD0.71 to close at USD71.57 – after it swung between a low and high of USD71.47 and USD72.38 – suggesting that bears were in the lead. Despite the weak session, there was no apparent signal to suggest any threat to the upward move, which started from the low of USD64.43 on 16 Aug. Lending further support to this bias is the fact that the commodity is now located rather comfortably above the 200-day SMA line, which itself is starting to show signs of turning upwards. Hence, we are keeping our near term positive trading bias.

As the overall short term trend is still positive and not showing signs of ending, we maintain our recommendation for traders to keep to their long positions. Recall that we opened these positions at USD72.08, the closing level on 24 Sep. For risk management, a stop loss can be set at below USD67.94 mark.

We peg the immediate support at USD69.98, which was the low of 21 Sep. This is followed by USD67.94, ie the low of 14 Sep. On the other hand, immediate resistance is pegged at USD74.26. This is followed by USD75.27, ie the high of 3 Jul.

Source: RHB Securities Research - 27 Sept 2018