Bulls are marching forward; maintain long positions. The black gold ended the latest session positively. At the closing it gained USD0.83 to settle at USD56.92. Session’s low and high were posted at USD55.48 and USD57.55. Broadly, the commodity’s rebound, which started from the low of USD42.36 on 24 Dec 2018, is still developing – this was after it recently completed a multi-week sideways consolidation at around the 50-day SMA line. The Daily RSI reading continues to rise, without being overbought – suggesting a healthy improvement in the momentum. Hence, we maintain our long bias.

With the commodity continuing to show signs of extending its rebound and remaining above the 50-day SMA line – we continue to recommend traders 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.

Immediate support is may be found at USD50.38, which was the low of 14 Jan. The following support is at USD42.36, or the low of 24 Dec 2018. Meanwhile, overhead resistance is set at USD57.96, which was the high of 16 Nov 2018. This is followed by USD60, a round figure.

Source: RHB Securities Research - 21 Feb 2019