Maintain long positions as the immediate resistance is cracked. The WTI Crude formed a white candle which at the closing crossed the previous immediate resistance of USD54.55. The intraday trend was positive as prices generally moved higher for the entire session. The low and high were recorded at USD54.24 and USD55.87, before closing USD1.18 higher at USD55.59. The breakout from the said previous immediate resistance signalled that the black gold’s multi-week sideways consolidation phase around the 50-day SMA line has completed – and that its rebound is likely to resume. The daily RSI reading, which has started to edge higher, also suggests momentum is picking up again. Hence, we maintain our long bias.

With the bias that the black gold’s upward moves are likely to extend with the completion of the multi-week sideways consolidation phase, 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 maintained at USD50.38, which was the low of 14 Jan. The following support is at USD42.36, or the low of 24 Dec 2018. The immediate resistance is revised to USD57.96, which was the high of 16 Nov 2018. This is followed by USD60, a round figure.