No signs of price exhaustion, maintain long positions. The WTI Crude failed to sustain its intraday gain and slid marginally USD0.06 at the close to end at USD59.03. The session’s low and high was posted at USD58.62 and USD59.57 – near the USD60 immediate resistance. Overall, the commodity’s rebound, which started from the low of USD42.36 on 24 Dec 2018, is still in place. While the follow-ups from the recent breakout of the USD57.96 previous resistance have not been strong – which raises the risk of a fake breakout occurring – until we see negative price actions to suggest price exhaustion or rejection from this level, we keep to our positive trading bias.

As there were no price actions to suggest the rebound has hit a wall, we continue to recommend that traders 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 USD54.52 level.

The immediate support is eyed at USD54.52, or the low of 8 Mar. The second support is at USD50.38, which was the low of 14 Jan. Towards the upside, the immediate resistance is revised to USD60 – a round figure. The second resistance is eyed at USD63.59, which was the low of 18 Jun 2018.

Source: RHB Securities Research - 20 Mar 2019