Maintain long positions until immediate support is broken. The WTI Crude experienced a negative session. During one point, it briefly breached the immediate support of USD49.41, with an intraday low of USD49.01, before a rebound kicked in and it settled at USD49.88. The high was at USD51.87. Provided the said immediate support holds at the closing, the bias for the commodity to extend its rebound is still considered valid. This rebound phase was triggered after the commodity’s steep retracement between early October and endNovember, which reached an oversold level. Hence, we are keeping our positive trading bias.

As the commodity was still able to close above the said immediate support, we continue to recommend that traders maintain long positions. We initiated these positions at USD52.95, or the closing level of 3 Dec. For riskmanagement purposes, a stop-loss can be placed below the USD49.41 level.

Towards the downside, immediate support is eyed at USD49.41, ie the low of 29 Nov. The second support is at the USD45.58 threshold, which was the low of 31 Aug 2017. Moving up, 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 - 18 Dec 2018