Maintain long positions as the multi-week technical rebound is being played out. The black gold added USD0.30 to settle at USD57.26 in the latest session. Session’s low and high were registered at USD56.71 and USD57.81. For now, we are treating the commodity’s upward move that started from the low of USD42.36 on 24 Dec 2018 as a multi-week technical rebound – to correct its previous sharp down-leg that took place between early Oct 2018 and end-Dec 2018, which sent its Daily RSI into an oversold reading. Until we see signs of the rebound exhausted, we keep to our positive trading bias.

With the commodity continuing to extend its rebound after completing its multi-week sideways consolidation, 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.

Towards the downside, immediate support is pegged at USD50.38, which was the low of 14 Jan. This is followed by USD42.36, or the low of 24 Dec 2018. On the other hand, immediate 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 - 25 Feb 2019