Maintain long positions, as prices continue to advance beyond the 200-day SMA line. The WTI Crude added USD0.14 in its latest session to close at USD60.21. The low and high were recorded at USD59.71 and USD60.34. The positive performance continues to place the commodity beyond the 200-day SMA line – indicating a positive bias. In the absence of adverse price actions from this line, the WTI Crude’s rebound should still be considered as valid. Hence, we are keeping our positive trading bias.

On the observation that prices are holding strong above said SMA line, we maintain our advice for traders to stay in long positions. We initiated these at USD59.20, or the closing level of 6 Dec. For risk-management purposes, a stop-loss can be placed below the USD57.70 level.

The immediate support is pegged at the aforementioned USD57.70, which was the low of 6 Dec – it was also near the 200-day SMA line. This is followed by USD54.76, or the low of 20 Nov’s “Bullish Engulfing” formation. Towards the upside, the immediate resistance is set at USD63.38 – the high of 16 Sep. This is followed by USD66.60, which was the high of 23 Apr.

Source: RHB Securities Research - 17 Dec 2019