Bulls are giving the resistance zone another try; maintain long positions. The black gold attempted another breakout from the resistance zone – made up of the 200-day SMA and the downtrend lines (as drawn on the chart) – in the latest session. At the closing, the WTI Crude added USD0.85 to close at USD55.78, after it reached a high of USD56.75. Price actions over the coming sessions are important, as, should a firm breakout happen, chances are high for the commodity to develop a relatively stronger rebound. Hence, we keep to our positive trading bias.

As the bulls are still showing strength to attempt a firm breakaway 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 riskmanagement 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. 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 - 29 Aug 2019