Bulls are still eyeing a breakout from the downtrend line; maintain long positions. The WTI Crude performed positively in the latest trade. At the closing it settled USD1.34 better at USD56.21, the low and high were recorded at US54.84 and USD56.41. The closing level has also placed the black gold near to test both the downtrend line (as drawn in the chart) and the 200-day SMA line. Should there be a firm breakout from these lines, chances for the rebound to extend - that started from an area near the USD50 immediate support – could be boosted. Hence, we are keeping our positive trading bias.

On the observation that the bulls are still attempting to push prices higher, 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 expected to emerge at USD50, a round figure. This is followed by USD45. On the other hand, the immediate resistance is set 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 - 20 Aug 2019