Maintain long positions given that the bulls are still attempting to extend the rebound. The latest session saw the black gold advance USD1.29 to close at USD54.93. Trading range was between USD53.69 and USD55.72. The positive session has again placed the commodity closer towards the resistance zone that is made up of the 200-day SMA and the downtrend lines (as drawn on the chart). The commodity has been attempting to breach the said resistance zone over the past two weeks. Should this zone be breached, the rebound that started from an area near the USD50 support mark would likely be extended. Maintain our positive trading bias.

Given that the bulls are still showing signs of control over the rebound, 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. 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 - 28 Aug 2019