Standing above the 200-day SMA line; maintain long positions. The WTI Crude settled USD0.40 higher at USD58.41 – trading ranged between USD57.76 and USD58.56. The positive session continued to place the black gold slightly above the 200-day SMA line – indicating a positive bias. As mentioned in our recent reports, the ability of the commodity to hold above the said SMA line is crucial – a price rejection from this line could mark the end of its rebound that started from an area near the USD50 mark. For now, we are keeping our positive trading bias.

With no adverse price actions from the 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 - 27 Nov 2019