Maintain long positions on the bias that rebound could still extend. The WTI Crude ceased the latest session slightly higher by USD0.40 at USD54.87. This was after it reached a low and high of USD54.26 and USD55.67. Overall, while the commodity remains trading below the downtrend line (as drawn in the chart) – after it was briefly tested recently, we are still expecting the rebound to extend. This counter-trend rebound started after the commodity came in near to test the immediate support level of USD50 recently. Towards the upside, the rebound phase could be enhanced should the said downtrend line, which is also located near the 200-day SMA line, be overcome by the bulls. Stay with positive trading bias.

On the bias that the rebound still has legs, we continue to recommend traders stay in long positions. We initiated these at USD57.10, the closing level of 13 Aug. For risk-management purposes, a stop-loss can now be placed at USD50.

The immediate support is set at USD50, a round figure. This is followed by USD45. Meanwhile, the immediate resistance is expected at USD58.82, which was the high of 31 Jul. This is followed by the USD60.94 mark, or the high of 1 Jul.

Source: RHB Securities Research - 19 Aug 2019