Maintain long positions until the trailing-stop is breached at the close. The black gold managed to reverse most of its earlier session losses to settle USD0.22 weaker at USD58.82. The session’s low and high was registered at USD58.17 and USD59.35. Broadly, the WTI Crude’s rebound phase, which started from the low of USD42.36 on 24 Dec 2018, remains in place – the recent price actions can be seen as a minor consolidation below the USD60 immediate resistance. For now, provided the USD57.96 immediate support is not broken, the risk of a deeper correction developing is deemed as low. We maintain our positive trading bias.

As the bulls are still showing control over price direction, we continue to recommend traders to stay in 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 the USD58.28 level.

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

Source: RHB Securities Research - 26 Mar 2019