Maintain long positions, as the previous immediate resistance was crossed. The WTI Crude ended the latest session on a strong note, as it crossed above the previous immediate resistance of USD54.84 after multiple attempts over the past sessions. This session’s low and high were posted at USD53.62 and USD56.07, before closing USD1.81 higher at USD55.97. The relatively strong session means the rebound phase that started from an area near the USD50 immediate support level is still progressing. In terms of upside expectation, at the minimum, we are expecting the 200-day SMA line to be tested. We maintain our positive trading bias.

As the rebound is still able to extend further, we stay with our call for traders to remain 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 now be placed at the breakeven point.

The immediate support is revised to USD52.39, or the low of 12 Oct. This is followed by USD50.00, a round figure. On the other hand, the immediate resistance level is now expected at USD57.02, ie the high of 25 Sep. This is followed by USD59.54, which was the high of 19 Sep.

Source: RHB Securities Research - 24 Oct 2019