Maintain long positions while keeping the trailing-stop tighter. The WTI ended the latest trading USD0.59 lower at USD56.07 – this was as it managed to narrow its intraday losses towards the end of the session. The low and high were posted at USD54.52 and USD56.51. Despite the weak session, the commodity’s overall rebound phase that started from the low of USD42.36 on 24 Dec 2018 is still valid. The price pattern that has been in development over the past two weeks suggests a minor sideways consolidation is taking place below the immediate resistance of USD57.96. Maintained our positive trading inclination.

As the overall upward move is still showing bias to extend further, we continue to recommend traders maintain long positions. These were initiated at USD49.78, or the close of 8 Jan. For risk-management purposes, a trailingstop can now be placed below USD54.52.

The immediate support is revised to USD54.52, the low of the latest session. This is followed by USD50.38, which was the low of 14 Jan. Conversely, 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 - 11 Mar 2019