Maintain long positions while moving the trailing-stop to breakeven. The WTI Crude came in near to test the 200-day SMA line in the latest session with an intraday high of USD58.84. This was before it slid lower to settle marginally lower by USD0.07 at USD57.83. Overall, the commodity’s rebound phase that started from the area near the USD50 immediate support level is still in place, as there was no clear price rejection signal from the said SMA being observed in the latest session. Hence, we keep to our positive trading bias.

As the indications are still suggesting the bulls are still in firm control over the price trend, 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 now be placed at the breakeven level.

Immediate support is now expected at USD54.84, which was the high of 10 Jun. This is followed by USD50, a round figure. Moving up, the overhead resistance is set 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 - 26 Jun 2019