Maintain long positions, as the rebound still looks valid. The WTI Crude ended marginally lower USD.03 at USD56.56 in the latest trading session. There was no particular strong intraday directional bias observed, with the low and high at USD56.09 and USD57.19. At the moment, the commodity’s price actions over the past two weeks indicate that a sideways consolidation is developing below the USD57.96 immediate resistance – this came near to being tested again on 1 Mar. However, until there are negative price actions that can invalidate this sideways consolidation phase, we maintain our long bias.

Given that the WTI Crude’s overall technical rebound – which started from the low of USD42.36 on 24 Dec 2018 – is still showing a constructive technical picture, we continue to recommend traders to maintain long positions. These were initiated at USD49.78, or the close of 8 Jan. For risk-management purposes, a trailing-stop can be placed below the USD53.08 level.

The immediate support is pegged at USD50.38, which was the low of 14 Jan. The following support is expected at USD42.36, or the low of 24 Dec 2018. On the other hand, the 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 - 6 Mar 2019