Initiate long positions as the bulls are pushing prices beyond 200-day SMA line. The WTI Crude formed a white candle in the latest session, at the closing, crossing above the previous immediate resistance of USD58.74. The black gold ended USD0.77 higher at USD59.2 – this was after it reached a low and high of USD57.70 and USD59.85. The positive session also placed the commodity further above the 200-day SMA line. This is a positive indication – it has been struggling to cross and stay above this line over the recent months. Switch our trading bias to positive.

Our previous short positions, initiated at USD55.17, were closed out at USD58.74 – a loss. On the expectation that the bulls are likely to push the commodity prices higher, we initiate long positions at the latest closing. For risk management purposes, a stop-loss can be placed below USD54.76.

Immediate support stays 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. Meanwhile, the immediate resistance is now expected at USD63.38 – the high of 16 Sep, followed by USD66.60, the high of 23 Apr.

Source: RHB Securities Research - 9 Dec 2019