Trading in the vicinity of 200-day SMA line; maintain long positions. The WTI Crude settled the latest session USD0.80 better at USD57.15. This came after it hit a low and high of USD56.27 and USD57.88. The black gold’s price actions over the recent sessions are now showing a good possibility that it is consolidating around the said SMA line. This implies we have yet to see a price rejection signal. Recall that the commodity has been struggling to overcome and hold above this SMA line over the recent months, hence the price actions around this SMA are important in signalling its next price directional bias. For now, we stay with our positive bias.

As the bulls are still performing relatively well around the said 200-day SMA line, 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 still pegged at USD52.39, or the low of 12 Oct. This is followed by USD50.00, a round figure. Conversely, 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 - 8 Nov 2019