Maintain long positions while keeping the trailing-stop tighter. The WTI Crude formed a white candle in its latest trade and, at the close, decisively crossed above the previous USD75.27 resistance. This indicated that the bulls were in the lead. The session’s low and high was registered at USD74.30 and UD76.90, before ending at USD76.41 – indicating a USD1.18 gain. The upside break of the said previous immediate resistance signalled the extension of the upward trend that re-started after the 200-day SMA line was tested on 16 Aug with a USD64.43 low. While the daily RSI is flashing out an overbought reading of 75.08, in the absence of a price-reversal signal, we keep our near-term positive trading bias.

With the overall positive trend not showing any signs of weakness, we maintain our recommendation that traders keep to their long positions. Recall that we opened these positions at USD72.08, or 24 Sep’s closing level. For risk-management purposes, a trailing stop can now be set at the USD74.26 level.

Immediate support is revised to USD75.27, ie the high of 3 Jul. This is followed by USD74.26, or the high of 11 Jul. Towards the upside, immediate resistance is now eyed at the USD77.28 level, which was the low of 28 Jun 2012. This is followed by the USD80 round figure.

Source: RHB Securities Research - 4 Oct 2018