Maintain long positions while tightening up the trailing-stop. The black gold failed to sustain its earlier session gain in the latest trading – after it came in near to test the immediate resistance of USD57.96. The high and low were registered at USD57.88 and USD55.57, before it ended USD1.42 weaker at USD55.80. The intraday price reversal near the said immediate resistance can be seen as an early negative sign. However, further negative price actions are needed to suggest the commodity is at risk of experiencing a deeper retracement. Until signs of this emerge, we maintain our long bias.

As the latest weak session failed to inflict damage to the commodity’s rebound phase, 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 trailing-stop can now be placed below USD53.08.

Immediate support is set USD50.38, which was the low of 14 Jan. The following support is at USD42.36, or the low of 24 Dec 2018. On the hand, 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 - 4 Mar 2019