Banking on further rebound, maintain long positions. The WTI Crude briefly tested the USD54.55 immediate resistance in the latest trading session. At the close, it added USD0.92 to settle at USD54.23, with the low and high registered at USD53.09 and USD54.93. The upside pressure put on said immediate resistance indicates that the bulls are still in control over the price trends. Towards the upside, a decisive break of this level should improve the prospect for the commodity to extend its rebound, as it also confirms a decisive breakout from the 50-day SMA line. As such, we keep to our positive trading tone.

As indications are tilted towards an extension of the upward move, we continue to recommend traders keep long positions. These were initiated at USD49.78, or the closing level of 8 Jan. For risk-management purposes, a stoploss can be placed at the breakeven level.

The immediate support is expected to emerge at USD50.38, which was the low of 14 Jan. This is followed by USD42.36, or the low of 24 Dec 2018. Towards the upside, the immediate resistance is pegged 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 - 31 Jan 2019