Maintain long positions, as the bulls are showing muscle. The WTI Crude performed positively in the latest session. At one point, it tested the USD54.84 immediate resistance before closing at USD54.70 – indicating a USD1.15 gain. The trading band was between USD53.64 and USD54.93. The positive session is an encouraging follow up from the previous session’s breakaway from the USD53.00 mark, which – in our view – confirms that the commodity is in the process of staging a stronger rebound phase. Towards the upside, at the minimum, we are expecting the bulls to challenge the 200-day SMA line. We maintain our positive trading bias.

As the bull are showing a firmer grip in staging a rebound, we maintain our recommendation for traders to stay in long positions. We initiated these at USD53.55, which was the closing level of 10 Oct. For risk-management purposes, a stop loss can be placed below the USD50.00 mark.

The immediate support is eyed at USD50.00, a round figure. This is followed by USD47.78, which was the high of 2 Jan. Meanwhile, overhead resistance is set to emerge at USD54.84, or the high of 1 Oct. This is followed by USD57.02, ie the high of 25 Sep.

Source: RHB Securities Research - 14 Oct 2019