Ride the rebound; maintain long positions. The black gold added USD0.72 to settle at USD56.79. The low and high were posted at USD55.96 and USD57.01. The session was a positive follow-up from the prior session – after the commodity rebounded from the USD50.38 immediate support mark. Price actions over the recent sessions are suggesting a sideways consolidation phase is in development below the immediate resistance of USD57.96. We are expecting that once this consolidation phase is over, the bulls are likely to test the said immediate resistance. Maintain our positive trading bias

With the rebound that started from the low of USD42.36 on 24 Dec 2018 still showing signs of progressing, 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 trailing-stop can now be placed below USD54.52.

The immediate support is set at USD54.52, the low of the latest session. This is followed by USD50.38, which was the low of 14 Jan. Moving up, the immediate resistance is maintained at USD57.96, which was the high of 16 Nov 2018. This is followed by USD60, a round figure.

Source: RHB Securities Research - 12 Mar 2019