Maintain long positions as the bulls are testing the 200-day SMA line. The WTI Crude was seen testing the 200-day SMA line in the latest session. The commodity generally moved higher for the session, the low and high were registered at USD60.13 and USD61.80, before settling at USD61.59, indicating a gain of USD1.45. Overall, the commodity’s rebound is still showing good signs of progressing. As mentioned before, price actions around the said SMA are important to watch for further price signals ie further rebound extension or correction towards the downside. Maintain our positive trading bias.

As the bulls are still showing clear control over the price direction and in the absence of negative price action from the 200-day SMA line in the latest session, we continue to recommend traders stay in 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 USD58.17 level.

Immediate support is pegged at USD58.17, which was the low of 25 Mar. The second support is eyed at USD54.52, or the low of 8 Mar. On the other hand, the overhead resistance is set at USD63.59, which was the low of 18 Jun 2018. This is followed by USD66.86, which was the low of 7 Sep 2018.

Source: RHB Securities Research - 2 Apr 2019