Maintain long positions as consolidation is taking place around the 200-day SMA line. The WTI Crude eased USD0.35 to closer at USD56.77. This was after it oscillated between a low and high of USD56.63 and USD57.79. The negative session did not produce price reversal signal. Instead, we are seeing it as part of the consolidation phase around the 200-day SMA line, which has been taking place over the past week or so. The said SMA is an important level, given the fact that the bulls have been struggling to cross and stay above this line over the recent months. In the absence of a price rejection signal from the said SMA, we are keeping our positive trading bias.

As the rebound is still showing firm footing, 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 expected to emerge at USD52.39, or the low of 12 Oct. This is followed by USD50.00, a round figure. Conversely, the immediate resistance is set 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 - 15 Nov 2019