Maintain long positions on the back of rebound play. The WTI Crude ended the latest session marginally higher by USD0.04 at USD56.96, this was after it posted a high and a low of USD57.61 and USD56.64. From the price pattern’s perspective, at the minimum, the commodity is still in the process of developing its corrective rebound to correct its previous steep declining leg that took place between early Oct 2018 and end-Dec 2018. The rebound is continuing to extend after the commodity completed its multi-week sideways consolidation around the 50-day SMA line recently. Based on these technical interpretations, we maintain our long bias. As the commodity shows signs of extending its rebound – 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 expected to emerge at USD50.38, which was the low of 14 Jan. Breaking this may see market retest USD42.36, or the low of 24 Dec 2018. Conversely, 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 - 22 Feb 2019