Maintain long positions, as the bias is still positive. The WTI Crude ceased the latest session USD1.37 weaker, settling at USD52.64, with the low and high recorded at USD51.80 and USD52.41. The recent 4-week price actions indicated that the commodity was still consolidating around the 50-day SMA line. Towards the upside, the immediate resistance – tested recently – needs to be taken out decisively for the WTI Crude to pave the way to extend its rebound, which started from the low of USD42.36 on 24 Dec 2018. Consequently, we maintain our positive trading tone.

As we observe the commodity experiencing a relatively narrow sideways consolidation around the 50-day SMA line, 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 stop-loss can be placed at the breakeven level.

The immediate support is still pegged 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 eyed 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 - 8 Feb 2019