Maintain long positions as the bulls are still in charge. The WTI Crude ceased the latest session on a neutral tone – it closed USD0.07 lower at USD75.23. The session’s trading range was between USD74.93 and USD75.91. The neutral session can be seen as a sign that some form of consolidation is probably developing around the immediate resistance of USD75.27, after the recent sharp rally. While the commodity has reached our minimum target for it to retest the said immediate resistance, in the absence of any price reversal signals, the overall bias is still favoured for the upward move to remain in place. Hence, we keep our near-term positive trading bias.

With no price signals to suggest the bulls have run out of steam, 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 trailing stop can be set at the break-even level.

Immediate support is set at USD74.26, the high of 11 Jul. Breaking this may see the market test USD69.98, which was the low of 21 Sep. On the other hand, the immediate resistance is set at USD75.27, ie the high of 3 Jul. This is followed by USD77.28, the low of 28 Jun 2012.

Source: RHB Securities Research - 3 Oct 2018