200-day SMA line is crossed marginally; maintain long positions. The black gold formed a white candle – which at the closing breached above the 200-day SMA line, albeit marginally. The session’s low and high were posted at USD61.60 and USD62.75, before ending at USD62.58, indicating an advance of USD0.99. While the crossing of the said SMA line is marginal so far, it can be taken as a positive signal that the commodity’s rebound leg (that started from the low of USD42.36 on 24 Dec 2018) is still progressing. We note that the Daily RSI has flashed out an overbought reading, however, in the absence of negative price actions from the said SMA, we are keeping our positive trading bias.

With the price continuing to perform positively near the said SMA line, 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 trailingstop can be placed below the USD58.17 level.

Immediate support is expected at USD58.17, which was the low of 25 Mar. This is to be followed by USD54.52, or the low of 8 Mar. Conversely, the immediate 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 - 3 Apr 2019