Maintain long positions as the confluence of resistance is marginally crossed. The WTI Crude ended the latest session on the strong side. It added USD0.69 to settle at USD57.23 – trading ranged between USD56.30 and USD57.50. The closing also placed the black gold slightly above both the previous immediate resistance of USD57.02 and the 200-day SMA line. As the breakaway from said resistance levels is still not decisive yet, price actions over the coming sessions would be critical, as a price rejection from this level could mean the bulls are lacking of strength. For now, we keep to our positive trading bias.

On the observation that the bulls are still having a firm control over the rebound, we recommend traders to stay in long positions. We initiated these at USD56.20, the closing level of 1 Oct. For risk management purposes, a stop loss can be placed below USD52.39.

Immediate support is set at USD52.39, or the low of 12 Oct. This is followed by USD50.00, a round figure. Moving up, the immediate resistance is now expected at USD59.54, which was the high of 19 Sep. This is followed by USD63.38, the high of 16 Sep.

Source: RHB Securities Research - 6 Nov 2019