Maintain long positions to play on rebound. The WTI Crude ended the latest session on a negative note. It eased USD0.50 to close at USD51.15. The intraday trading band was wide, the low and high were USD50.94 and USD52.88. Nevertheless, we are still expecting the commodity to continue to trade in the rebound phase, provided the recent low of USD49.41 is not breached to the downside. This ongoing rebound was triggered after the commodity experienced a sharp retracement between early October and end-November, which saw its daily RSI falling into the oversold threshold. Based on this, we are keeping our positive trading bias.

As the risk for the commodity to resume its downtrend is relatively low at this juncture, we continue to recommend that traders maintain long positions. We initiated these positions at USD52.95, or the closing level of 3 Dec. For risk-management purposes, a stop-loss can be placed below the USD49.41 level.

Immediate support is expected at USD49.41, ie the low of 29 Nov. This is followed by USD45.58 threshold, which was the low of 31 Aug 2017. Conversely, immediate resistance is set at the USD54.12 mark, ie the high of 23 Nov. This is followed by USD57.96, or the high of 16 Nov.

Source: RHB Securities Research - 13 Dec 2018