Rebound still in place, maintain long positions. The WTI Crude ended the latest session on a weak tone, settling USD0.81 lower at USD57.77. This came after the commodity reached a low and high of USD57.50 and USD58.74. Despite the weak session, the black gold is still holding above the 200-day SMA line – suggesting no price rejection signal yet. Recall that the WTI Crude has been struggling to overcome and hold above said SMA line over the recent months. For now, we keep to our positive trading bias.

With no clear technical evidence to indicate a price reversal from said SMA line, we recommend traders stay in long positions. We initiated these at USD56.20, or the closing level of 1 Oct. For-risk management purposes, a stop loss can now be placed at the breakeven level.

The immediate support is pegged at USD54.76, which was the low of 20 Nov’s “Bullish Engulfing” formation. This is followed by USD52.39 – or the low of 12 Oct. Moving up, the immediate resistance is set at USD59.54, which was the high of 19 Sep. This is followed by USD63.38, ie the high of 16 Sep.

Source: RHB Securities Research - 25 Nov 2019