Maintain long positions until signs of a deeper retracement emerge. The WTI Crude eased USD1.03 to settle at USD63.58. The session’s low and high were registered at USD64.49 and USD63.31. The weak session came on the back of the recently overbought Daily RSI reading. So far, the weak session can be seen as a sign that a minor consolidation is developing, and until further negative price actions suggest a deeper retracement is developing, we are keeping our positive trading bias.

As the commodity’s overall upward move that started from the low of USD42.36 on 24 Dec 2018 is still in place, 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 set at USD58.17, which was the low of 25 Mar. This is followed by USD54.52, or the low of 8 Mar. Moving up, the immediate resistance is pegged at USD66.86, which was the low of 7 Sep 2018. This is followed by USD70, a round figure.

Source: RHB Securities Research - 12 Apr 2019