Maintain long positions. The WTI Crude advanced USD0.79 to close at USD56.59 in the latest trading. The daily trading range was between USD55.81 and USD57. For now, the commodity’s price actions over the past two weeks resemble a sideways consolidation below the immediate resistance of USD57.96. That is, we have not spotted any clear price rejection signals from the said level – this was despite the prior session’s failed attempt to cross it. This implies the technical rebound that started from the low of USD42.36 on 24 Dec 2018 is still valid, with the possibility to extend further. Maintain our long bias.

As there are no price signals to suggest the technical rebound (to correct the prior sharp decline which took place between early Oct 2018 and end Dec 2018) has reached an end, 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 be placed below USD53.08.

Immediate support is expected at USD50.38, which was the low of 14 Jan. The second support is eyed at USD42.36, or the low of 24 Dec 2018. Moving up, 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 - 5 Mar 2019