Bulls are steady around the 200-day SMA line; maintain long positions. The WTI Crude posted a USD0.32 gain to close at USD57.12. Trading happened in the range of USD56.20 and USD57.53. The positive session can be seen as part of the minor consolidation around the 200-day SMA line. This has been in development over the past week or so. As indicated in our recent reports, the black gold’s price actions around this SMA line are crucial – a firm breakaway would likely signal further extension of the rebound that started from an area near the USD50 support level. Maintain our positive trading bias.

In the absence of a price rejection signal from the said 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 pegged at USD52.39, or the low of 12 Oct. This is followed by USD50.00, a round figure. Towards the upside, 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 - 14 Nov 2019