Bulls are pushing ahead; maintain long positions. The WTI Crude formed a long white candle in the latest session and at the closing, marginally crossing the resistance mark of USD75.27 – thus marking the highest close since the low of USD26.05 posted on 11 Feb 2016. The session’s low and high were recorded at USD72.95 and USD75.77, before ending at USD75.30 – indicating a gain of USD2.05.

While the upside breach of the USD75.27 resistance mark is not decisive yet, we still see it as a positive indication that the bulls are still largely in control and not showing sign of exhaustion. This suggests the upward move since the low of USD64.43 on 16 Aug is still ongoing. We keep our near-term positive trading bias. While the commodity has reached our minimum target of retesting the USD75.27 resistance mark, in the absence of price reversal signals from this level, 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, we revise the trailing stop to the break-even level.

We revise the immediate support to USD74.26, the high of 11 Jul. This is now followed by USD69.98, which was the low of 21 Sep. Towards the upside, the immediate resistance is set at USD75.27, ie the high of 3 Jul – we deem this resistance level as still valid as it was not decisively breached in the latest session. This is followed by USD77.28, the low of 28 Jun 2012.

Source: RHB Securities Research - 2 Oct 2018