Maintain long positions, as the bulls are giving the resistance zone another try. The WTI Crude formed a white candle to settle USD2.32 higher at USD56.26. Trading happened in the range of USD53.84 and USD56.28. The positive performance sent the black gold back to the resistance zone, which consists of the 200-day SMA and the downtrend lines (as drawn on the chart). The WTI Crude has been attempting to break away from this zone over the past weeks, and a decisive upside breach from this area could enhance the case for the commodity to extend its rebound. We maintain our positive trading bias.

Given that the rebound from the area near the USD50 level is still showing the possibility of 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 below the USD52.84 mark.

The immediate support is set at USD52.84, ie the low of 3 Sep. This is followed by the USD50 round figure. Towards the upside, 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 - 5 Sept 2019