Rebound still extending; maintain long positions. The black gold formed a white candle and, in the process, tested the USD59.70 immediate resistance. The session’s low and high were posted at USD58.65 and USD59.93, before closing USD1.55 higher at USD59.38. This closing level also placed the WTI Crude indecisively above the 200-day SMA line. The positive session suggests the rebound leg, which started from the area near the USD50 immediate support level, remains in place. In the absence of price exhaustion signals from said immediate resistance, we keep to our positive trading bias.

As the bulls are still showing strength, we continue to recommend traders stay in long positions. These were initiated at USD56.56, or the closing level of 20 Jun. For risk-management purposes, a stop-loss can now be placed at the breakeven level.

Towards the downside, the immediate support is set at USD54.84, which was the high of 10 Jun. This is followed by USD50, a round figure. On the other hand, 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 - 27 Jun 2019