Maintain long positions. The WTI Crude registered a positive session – it advanced USD0.13 to settle at USD56.34. The low and high are recorded at USD55.28 and USD56.60. The positive closing is placing the black gold closer for a breakout from a resistance zone that consists of the 200-day SMA line and the downtrend line (as drawn on the chart). Should a decisive breakout happen, the bias for the commodity to extend its rebound – which started from an area near the immediate support of USD50 – would likely be enhanced. Maintain our positive trading inclination.

As the commodity is on the verge of breaking out from the said resistance zone, 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.

Towards the downside, immediate support is set at USD50, a round figure. This is followed by USD45. Conversely, 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 - 21 Aug 2019