Bulls are having good control above 200-day SMA line; maintain long positions. The WTI Crude ceased the latest session on a high note – adding USD0.73 to close at USD60.94. This was after it clocked a low and high of USD60.03 and USD61.06. The black gold has been showing strength over the recent sessions – this was after it crossed above the 200-day SMA line, indicating a positive bias. Provided prices continue to hold above the said SMA line, the ongoing rebound would not likely be at risk of reaching an end. Maintain our positive trading bias.

As the rebound is still showing signs of extending further, 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 USD54.76 threshold.

We are keeping the immediate support at USD57.70, which was the low of 6 Dec. This is followed by USD54.76 – the low of 20 Nov’s “Bullish Engulfing” formation. Moving up, the immediate resistance is set at USD63.38, or the high of 16 Sep. This is followed by USD66.60, ie the high of 23 Apr.

Source: RHB Securities Research - 18 Dec 2019