Maintain long positions. The WTI Crude ended the latest session on a positive note, adding USD0.55 to settle at USD53.36. Trading took place in between USD52.51 and USD53.74. As opined in our previous report, we are not seeing conclusive technical evidence that suggests the commodity is experiencing a negative price reversal from the immediate resistance of USD54.84 – despite it failing to cross this level twice recently. This implies the rebound phase that commenced after the commodity came in near the immediate support level of USD50.00 on 3 Oct is still in place. We maintain our positive trading bias as we still expect the commodity, at the minimum, to retest the 200- day SMA line.

On the observation that the rebound is still intact, 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 expected at USD50.00, a round figure. This is followed by USD47.78, which was the high of 2 Jan. On the other hand, the immediate resistance level 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 - 17 Oct 2019