Immediate support is still holding up; maintain long positions. The black gold managed to reverse most its intraday losses to settle USD0.31 weaker at USD63.60. The low and high were at USD62.77 and USD63.93. The intraday price actions suggest the USD62.99 immediate support remains under pressure and, for now, there are no strong positive price reactions from said level that could suggest a total price reversal is taking place. Towards the downside, a firm breach of said support may indicate greater risk for a deeper retracement to develop. Until this happens, we maintain our positive trading bias.

As there has been no price confirmation to indicate that the WTI Crude’s upward move – which started from the low of USD42.36 – is due for a deeper correction, 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 USD62.99 level.

The immediate support is pegged at USD62.99, which was the low of 16 Apr. This is followed by USD58.17, the low of 25 Mar. On the other hand, the immediate resistance is set at USD66.86, or the low of 7 Sep 2018. This is followed by USD70, a round figure.

Source: RHB Securities Research - 2 May 2019