No price exhaustion signals spotted; maintain long positions. The WTI Crude registered a gain of USD0.31 to close at USD63.89. The session’s low and high were posted at USD63.66 and USD64.65. Price actions over the latest sessions are suggesting the probability is high that the commodity is experiencing a minor consolidation ie no price exhaustion signals are spotted. This consolidation phase is taking place after the commodity’s recent upward move sent its Daily RSI reading into overbought territory. Maintain our positive trading bias.

With the commodity’s upward move is still showing good signs of sustaining, 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 still pegged at USD58.17, which was the low of 25 Mar. The second support is at USD54.52, or the low of 8 Mar. Meanwhile, the immediate resistance is eyed at USD66.86, which was the low of 7 Sep 2018. This is followed by USD70, a round figure.

Source: RHB Securities Research - 15 Apr 2019