Maintain long positions to tag on the rebound. The black gold settled USD0.78 higher at USD57.43. The session’s low and high were posted at USD56.66 and USD57.98. The positive session is signalling that the rebound phase that started from near the USD50 support level is still extending. At the minimum, we are expecting this rebound to test the 200-day SMA line, which is also located near the immediate resistance of USD59.70. The Daily RSI reading of 55.3 is also suggesting that the rebound is still in a healthy condition ie not overbought yet. We maintain our positive trading tone.

On expectation that the rebound may still carry on towards the 200-day SMA line, we continue to recommend traders to stay in long positions. These were initiated at USD56.56, the closing level of 20 Jun. For risk management purposes, a stop-loss can be placed below USD50.

Towards the downside, the immediate support is expected at USD50, a round figure. This is followed by USD44.35, which was the low of 2 Jan. Moving up, the overhead resistance is now pegged at USD59.70, ie the high of 30 May. This is followed by USD63.81, which was the high of 20 May.

Source: RHB Securities Research - 24 Jun 2019