Maintain long positions as there is no price rejection signal from the 200-day SMA line. The WTI Crude ceased the latest session USD0.38 weaker at USD56.56. Trading happened between USD56.25 and USD57.40. We regard the latest weakness as just part of the black gold’s minor consolidation phase around the 200-day SMA line, developing over the past week. The said SMA line has been a tough level for the bulls to cross and sustain above over the recent months, as such price actions around this level is critical in signalling the next price directional bias. For now, in the absence of a price rejection signal, we are keeping our positive trading bias.

As the rebound phase has yet to flash out signs of reaching a peak, 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.

We are keeping the immediate support target 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 - 12 Nov 2019