No price-exhaustion signals yet; maintain long positions. The WTI Crude eased USD0.42 to settle at USD63.98. The session’s trading range was confined between USD63.68 and USD64.79. The latest weak session did not generate signals to indicate that the commodity’s upward move that started from the low of USD42.36 on 24 Dec 2018 has been exhausted – this is despite the fact its Daily RSI reading is still flashing out an overbought reading. Lending further support to this positive bias is the fact that it is still trading above the 200- day SMA line. Maintain our positive trading bias.

In the absence of negative price signals, 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.

Towards the downside, immediate support is kept at USD58.17, which was the low of 25 Mar. This is followed by USD54.52, or the low of 8 Mar. On the other hand, the immediate resistance is set at USD66.86, which was the low of 7 Sep 2018. This is followed by USD70, a round figure.

Source: RHB Securities Research - 10 Apr 2019