Maintain long positions as the trailing-stop is still holding up. The WTI Crude settled the latest session on the weak side. At the closing it ceased USD0.53 lower at USD53.64 – trading range was between USD52.96 and USD55.26. The latest session’s performance indicated the bulls are still attempting to extend the commodity’s rebound, which has been experiencing a retracement after it tested a resistance zone made up of the 200-day SMA and downtrend lines (as drawn on the chart). Provided the stop-loss of USD53.24 is not breached, we keep to our positive trading bias.

As the rebound phase may still be extending, 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 pegged 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 - 27 Aug 2019