Rebound still in effect; maintain long positions. The WTI Crude ceased the latest session marginally higher by USD0.08 at USD52.72 – this was after it oscillated in the band of USD52.08 and USD52.99. Looking at the price actions in the recent weeks, the commodity is showing signs of consolidating at around both the 50-day SMA line and the immediate resistance of USD54.55 – the former was recently tested. This multi-week consolidation was triggered after the commodity rebounded sharply between mid-Dec 2018 and mid-Jan 2019. Hence, we maintain our positive trading tone.

Given that price actions are still showing the possibility for the commodity to extend its rebound, we continue to recommend traders keep long positions. These were initiated at USD49.78, or the closing level of 8 Jan. For riskmanagement purposes, a stop-loss can be placed at the breakeven level.

The immediate support is set at USD50.38, which was the low of 14 Jan. The following support is at USD42.36, or the low of 24 Dec 2018. On the other hand, the 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 - 11 Feb 2019