Maintain long positions, as indications are still looking good. The WTI Crude ended the session higher by USD0.55 at USD72.12, after it was sandwiched between USD71.71 and USD72.60. Based on the latest three sessions’ price actions, we observed that a minor consolidation may be taking place – signalling that the bulls may be taking a breather after the commodity breached above the previous USD71.40 resistance recently. This implies that chances are high the rebound since 16 Aug’s low of USD64.43 is likely to still extend. Based on this, we are keeping our near-term positive trading bias.

As the WTI Crude’s near-term positive trend is still promising, we maintain our recommendation for traders to keep their long positions. Recall that we opened these positions at USD72.08, or the closing level on 24 Sep. For risk-management purposes, a stop loss can be set at below the USD67.94 mark. The immediate support is pegged at USD69.98 – this was the low of 21 Sep.

The second support is at USD67.94, ie the low of 14 Sep. Towards the upside, the immediate resistance is pegged at USD74.26. This is followed by the USD75.27 level, or the high of 3 Jul.

Source: RHB Securities Research - 28 Sept 2018