Maintain long positions to ride on the rebound. The WTI Crude advanced USD0.93 to close at USD56.71. This was after it reached a low and high of USD55.43 and USD56.89. The positive session again places the commodity on the verge of breaking out from a resistance zone, consisting of the 200-day SMA and the downtrend lines (as drawn on the chart). Recap that the commodity has been attempting to break away from the said resistance zone since mid-August. A firm breakout would be seen as a positive indication for the rebound that started from an area near the USD50 immediate support mark. Maintain our positive trading bias.

Banking on the outlook for the rebound to extend, 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 eyed 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 - 30 Aug 2019