Rebound is still at infancy stage; maintain long positions. The WTI Crude extended its slide for a second consecutive session. This comes after it failed in its two attempts to cross the immediate resistance of USD54.84 in the prior two sessions. At this juncture, we are not seeing the latest two sessions’ weak performance as a sign of a possible negative price reversal from the said immediate resistance. Instead, we believe the commodity is still in the early stage of developing a rebound phase – this is after it came in near to test the USD50.00 support level on 3 Oct. We maintain our positive trading bias.

Given our bias that the rebound could still be extending, 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.

Immediate support is set at USD50.00, a round figure. This is followed by USD47.78, which was the high of 2 Jan. Moving up, overhead resistance is set 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 - 16 Oct 2019