Maintain long positions, as prices are still holding well around the 200-day SMA line. The WTI Crude softened USD0.30 to settle the latest session at USD58.11. Trading happened between USD57.51 and USD58.68. Despite the weak closing, the commodity is still holding above the 200-day SMA line, which suggest the bulls retain good control over the WTI Crude’s rebound. Said SMA line is technically crucial, as a price rejection signal from this line could potentially mark an interim top for the commodity’s rebound phase, which started from an area near the USD50 support level. We maintain our positive trading bias for now.

As the rebound may still be able to extend, we recommend traders stay in long positions. We initiated these at USD56.20, or the closing threshold 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 – the high of 16 Sep.

Source: RHB Securities Research - 28 Nov 2019