Maintain long positions while keeping the risk management tighter. The WTI Crude ended the latest session on a negative note. At the closing it settled USD1.18 weaker at USD54.17, the low and high were posted at USD53.24 and USD55.60. The black gold has been in the retracing mode over the recent sessions, after it tested a resistance zone made up of the 200-day SMA and downtrend lines (as drawn on the chart) recently – increasingly suggesting a possible price rejection from the said resistance zone. Until the latest session’s low is breached decisively, we keep to our positive trading bias.

Pending confirmation that a price rejection from the said zone has happened, 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.

We are keeping the immediate support target at USD50, a round figure. This is followed by the USD45 threshold. Moving up, 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 - 26 Aug 2019