Maintain long positions as the rebound is still developing. The WTI Crude ended the latest session in positive territory. It gained USD0.50 to settle at USD56.09, after it oscillated between a low and high of USD55.29 and USD56.33. The positive session is signalling that the commodity’s rebound phase is extending – this was after it recently completed its multi-week sideways consolidation around the 50-day SMA line. The Daily RSI reading, which continued to edge higher, is also suggesting that momentum is picking up – without being overbought. Hence, we maintain our long bias.

As the bias is still tilted towards the extension of a rebound – after the recent completion of sideways consolidation – we continue to recommend traders to maintain long potions. These were initiated at USD49.78, or the closing of 8 Jan. For risk management purposes, a stop-loss can be placed at the breakeven level.

Towards the downside, the immediate support is expected at USD50.38, which was the low of 14 Jan. Breaking this may see the commodity testing USD42.36, or the low of 24 Dec 2018. Moving up, the immediate resistance is expected at USD57.96, which was the high of 16 Nov 2018. This is followed by USD60, a round figure.

Source: RHB Securities Research - 20 Feb 2019