Maintain long positions. The WTI Crude failed to sustain its intraday gains in the latest session. At the closing, it weakened USD0.33 to close at USD55.35 – the low and high were posted at USD54.85 and USD56.46. Price actions over the recent two sessions are indicating the commodity is still attempting to break away from a resistance zone, made up of the 200-day and the downtrend lines (as drawn on the chart). Price actions over the coming sessions around this zone are critical. A firm upside breach could signal extension of its rebound that started from an area near the USD50 support mark. Maintain positive trading bias.

With no clear price rejection signals from the said resistance zone, 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 stoploss can now be placed at the USD50 mark.

Immediate support is still eyed at USD50, a round figure. This is followed by the USD45 threshold. 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 - 23 Aug 2019