Maintain long positions. The WTI Crude formed a white candle in the latest trading, at one point it tested the immediate resistance of USD54.55. The session’s low and high were registered at USD53.27 and USD54.60 – before closing at USD53.90, indicating a gain of USD0.80. The positive session marked a positive follow-up after the black gold came near to testing the 50-day SMA line. Towards the upside, a decisive upside breach of the said immediate resistance would likely mark the end of the commodity’s multi-week sideways consolidation around the 50-day SMA line. Hence, we maintain our positive trading tone.

As the rebound that started from the low of USD42.36 on 24 Dec 2018 is still showing good signs of extending, 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 be placed at the breakeven level.

The immediate support is eyed at USD50.38, which was the low of 14 Jan. The second support is at USD42.36, or the low of 24 Dec 2018. Conversely, 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 - 14 Feb 2019