Maintain long positions while keeping the trailing-stop tight. The WTI Crude formed a white candle in the latest trading session, and at the closing managed to breach above the 50-day SMA line – albeit marginally. The intraday tone was positive as it trended higher for the entire session – the low and high were recorded at USD52.09 and USD53.92, before ending at USD53.80, implying a gain of USD1.73. The positive session suggests the rebound that started from the low of USD42.36 is extending. The daily RSI reading of 60.55 also indicates headroom for further upside is possible. Based on these, we keep to our positive trading bias.

With the rebound continuing to show positive signs of developing, we continue to recommend traders to keep to long positions. These were initiated at USD49.78, or the closing level of 8 Jan. For risk-management purposes, a stop-loss can now be placed at the breakeven level.

Immediate support is still pegged at USD44.35, which was the low of 2 Jan. This is to be followed by USD42.36, or the low of 24 Dec 2018. Meanwhile, immediate resistance is set at USD54.55, ie the high of 4 Dec 2018. This is followed by USD57.96, which was the high of 16 Nov 2018.

Source: RHB Securities Research - 22 Jan 2019