Maintain long positions while waiting for clearer price actions near the resistance zone. The WTI Crude failed to sustain to its positive tone in the latest session. This was after it tested the resistance zone, which comprise the 200-day SMA and downtrend lines (as drawn on the chart), during the intraday. Despite the failure to break away from said zone, there are insufficient price signals to suggest that the black gold’s rebound – which started from an area near the immediate support of USD50 – has reached an end. Hence, we maintain our positive trading inclination.

Given that the prospects for the rebound to extend has not diminished yet, we continue to recommend traders stay in long positions. We initiated these at USD57.10, or the closing level of 13 Aug. For risk-management purposes, a stop-loss can now be placed at the USD50 mark.

Immediate support is set at USD50, a round figure. This is followed by the USD45 threshold. 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 - 22 Aug 2019