Maintain long positions as the technical picture remains positive. The WTI Crude ended the latest session on the weak side. At the closing, it settled USD0.96 lower at USD58.47, the low and high were registered at USD57.75 and USD59.80. Still, the negative session has not produced price signals to suggest the rebound that started from near the USD50 immediate support has reached an end. Instead, based on the commodity’s price actions in recent sessions, chances are high that it is consolidating around the 200-day SMA line. Maintain our positive trading bias.

As the bulls are still showing signs of control over the price trend, 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 stoploss can now be placed at the breakeven level.

We are keeping the immediate support target 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 - 1 Jul 2019