No price reversal signals sighted; maintain long positions. The WTI Crude settled USD0.24 better at USD64. Session’s trading range was between USD63.46 and USD64.16. The upward bias that started from the low of USD42.36 on 24 Dec 2018 is still in place. Price actions in the recent sessions are indicating a minor sideways consolidation is developing ie the risk for a deeper retracement is considered low for now. This consolidation phase is deemed healthy to correct the recent upward move, which sent the Daily RSI reading into overbought territory. Maintain our positive trading bias.

As the overall price trajectory is still positive, 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 expected at USD58.17, which was the low of 25 Mar. The second support is eyed at USD54.52, or the low of 8 Mar. Conversely, 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 - 19 Apr 2019