Maintain long positions until clear price rejection is confirmed. The WTI Crude formed a black candle to conclude the latest session USD1.65 weaker at USD55.75. The low and high were recorded at USD55.61 and USD58.30. The weak session placed the commodity slightly below the 200-day SMA line. This was after it came in near to test the immediate resistance of USD58.82, two sessions ago. While the risk of a possible price rejection from the said resistance has increased, a more decisive break of the said SMA is needed to signal such possibility. For now, stay with our positive trading bias.

Pending signals to indicate the rebound phase that started from the area near the USD50 support mark has reached an end, 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 - 12 Sept 2019