Maintain long positions, as the bulls are still showing a fight. The WTI Crude formed a “Hammer” candlestick formation during yesterday’s trading – indicating a possible end to its recent sessions’ corrections, which set in after the commodity’s relatively strong upward move in recent weeks. The session saw the bears again testing the USD74.26 immediate support, with a low of USD73.07. This was before a rebound took place and pushed the WTI Crude to a USD74.29 close, indicating a marginal decline of USD0.05. The high was at USD74.58. With the emergence of the price reversal candle – and the commodity still holding above said immediate support – we keep our near-term positive trading bias.

With the appearance of the price reversal candle, we maintain our recommendation that traders should keep to their long positions. Recall that we opened these positions at USD72.08, or 24 Sep’s closing level. For riskmanagement purposes, we revise the trailing stop to USD73.07, ie the low of the latest session.

The immediate support is maintained at USD74.26, or the high of 11 Jul. This is followed by the USD71.47 level, which was the high of 26 Sep. On the flip side, the immediate resistance is eyed at USD75.27, ie the high of 3 Jul. This is followed by the USD77.28 threshold, or the low of 28 Jun 2012

Source: RHB Securities Research - 9 Oct 2018