Maintain long positions as there are no clear price rejection signals from the immediate resistance. The WTI Crude ended the latest session weaker by USD0.45 at USD57.40. This was after it came near to test the immediate resistance of USD58.82 with an intraday high of USD58.76. At this juncture, there is no sufficient technical evidence to suggest price rejection has happened from the said immediate resistance level – further negative price actions are needed to confirm this. Hence, we still regard the rebound that started from an area near the USD50 support level as still intact. Maintain our positive trading bias.

As the bulls are still seen in 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 below the USD52.84 mark.

Towards the downside, immediate support is pegged at USD52.84, ie the low of 3 Sep. This is followed by the USD50 round figure. Meanwhile, 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 - 11 Sept 2019