Join the rebound, hold on to long positions. The WTI Crude advanced USD0.28 to close at USD57.22, as it managed to reverse from its intraday softness. The low and high were registered at USD56.43 and USD57.43. Overall, the commodity is still showing signs of extending its corrective rebound, which started from the low of USD42.36 on 24 Dec 2018 – this was after it completed its sideways consolidation phase around the 50-day SMA line about three weeks ago. To recap, we still consider this as just a technical rebound to correct the sharp decline which took place between early Oct 2018 and end of Dec 2018. Based on these, we keep to our positive trading tone.

As the rebound is not showing sign of fatigue, we continue to recommend traders maintain long positions. 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. Conversely, 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 - 1 Mar 2019