Maintain long positions as there is no clear price rejection signal yet. The WTI Crude failed to hold on to its intraday gains, at the closing, it settled USD0.88 lower at USD56.35. Trading ranged between USD56.11 and USD57.85. The negative session pushed the black gold slightly back below the 200-day SMA line, indicating there was no positive follow-up from the prior session’s marginal upside breach of the said SMA line. However, at this juncture, there is still no sufficient technical evidence to suggest a price rejection from the said SMA line. Recall that the black gold has been struggling to overcome the said SMA line over the recent months. Maintain our positive trading bias for now.

Until there are further price actions taking place to invalidate the case for a countertrend rebound extension, we recommend traders 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 maintained at USD52.39, or the low of 12 Oct. This is followed by USD50.00, a round figure. On the other hand, 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 - 7 Nov 2019