Maintain long positions, as the upward move is still showing strength. The WTI Crude formed a white candle to settle USD1.32 stronger at USD64.40 – consequently breaking above the previous USD63.59 immediate resistance. The session’s low and high was posted at USD63.13 and USD64.48. Overall, the rebound that started from the low of USD42.36 on 24 Dec 2018 is still showing signs of progressing above the 200-day SMA line. While the Daily RSI is flashing out an overbought reading, in the absence of price-exhaustion signals, we are keeping our positive trading bias.

As the commodity continued to show positive price actions above 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 trailing-stop can be placed below the USD61.82 level – the low of 5 Apr.

Immediate support is maintained at USD58.17, which was the low of 25 Mar. This is followed by USD54.52, or the low of 8 Mar. Towards the upside, the immediate resistance is revised to USD66.86, which was the low of 7 Sep 2018. This is followed by USD70, a round figure.

Source: RHB Securities Research - 9 Apr 2019