Maintain long positions while tightening up trailing-stop. After three consecutive sessions’ attempts to breach above the USD60 immediate resistance decisively, the black gold finally slipped from the said level. The latest session saw it weaken USD0.94 to settle at USD59.04 - the intraday tone was negative as it generally trended lower, the high and low were registered at USD60.07 and USD58.28. For now, we are still regarding the commodity’s upward price trajectory as still intact – supported by the fact it is still trading above the USD57.96 resistance-turned-support mark. Maintain our positive trading bias.

As there is no sufficient technical evidence to indicate the upward move has reached an end, 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 now be placed below USD58.28.

Immediate support is revised to USD57.96, which was the high of 16 Nov. This is followed by USD54.52, or the low of 8 Mar. Conversely, the immediate resistance is expected at USD60 – a round figure. The second resistance is eyed at USD63.59, which was the low of 18 Jun 2018.

Source: RHB Securities Research - 25 Mar 2019