Maintain long positions as there are no price rejection signals from the 200-day SMA. The black gold eased USD0.36 to settle at USD62.10 – still above the 200-day SMA line. The session’s trading range was between USD61.89 and USD62.77. The latest sessions’ price actions are indicating the commodity is likely developing a minor consolidation phase at around the said SMA line – on the back of the recent overbought daily RSI reading. Until there are fresh negative price actions that could indicate potential price rejection from this SMA, we are keeping our positive trading bias.

As we are not spotting any price exhaustion signals from around the said SMA, 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 set at USD58.17, which was the low of 25 Mar. The second support is at 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 - 5 Apr 2019