No adverse price actions from the 200-day SMA line; maintain long positions. The WTI Crude failed to hold on to its earlier session’s gain in the latest session. At the closing, the commodity fell USD0.67 to close at USD57.05. Price actions over the past two weeks are indicating the bulls are still attempting to cross the 200-day SMA line. A firm breakaway from this SMA line is important as it would signal the black gold’s next directional bias. Recall that it has been struggling to cross and stay above this line over the recent months. On the observation that the bulls are still able to retain control around the said SMA line, we are keeping 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 set at USD52.39, or the low of 12 Oct. This is followed by USD50.00, a round figure. Moving up, 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 - 19 Nov 2019