The bulls are taking a breather – maintain long positions. The black gold moved marginally higher USD0.05 to close at USD52.62 – this is as the WTI Crude gave back most of its earlier session’s gain towards the latter half, with the high and low marked at USD53.64 and USD51.86. Based on the commodity’s performances in recent sessions, we believe it is taking a minor consolidation in the vicinity of the 50-day SMA line. Towards the upside, a firm breach above the USD54.55 immediate resistance is likely to signal a firm breakaway from said line. The daily RSI reading of 56.1 is still healthy to support the case for further price upward extensions. As such, we keep to our positive trading tone.

As the overall positive price trajectory remains in place, we continue to recommend traders 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 be placed at the breakeven level.

The immediate support is revised to USD50.38, which was the low of 14 Jan. This is to be followed by USD42.36, or the low of 24 Dec 2018. Moving up, the immediate resistance is kept 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 - 24 Jan 2019