Maintain long positions as the bulls are pushing through the 200-day SMA line. The WTI Crude formed a white candle to marginally cross above the 200-day SMA line. This is a positive follow-up from the previous session’s “Bullish Engulfing” formation. Session’s low and high were posted at USD56.60 and USD58.67, before closing at USD58.58. The positive performance near the said SMA line is suggesting the multi-week rebound – that started from an area near the USD50 level – is still extending. Hence, we are keeping our positive trading inclination.

As the bulls are still able to extend the commodity’s rebound phase, 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 now be placed at the breakeven level.

We revised the immediate support to USD54.76, the low of 20 Nov’s “Bullish Engulfing” formation. This is followed by USD52.39, or the low of 12 Oct. This is followed by USD50.00, a round figure. On the other hand, 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 - 22 Nov 2019