Maintain long positions, as the rebound has yet to signal a top. The WTI Crude formed a black candle in the latest session, settling USD0.62 lower at USD61.06. Trading ranged between USD60.63 and USD61.88. At this juncture, we still believe the black gold’s rebound, which resumed from the low of the 20 Nov 2019’s “Bullish Engulfing” formation, remains in place. This bias should stay, provided the USD60.00 immediate support is not breached to the downside. Prices staying above the 200-day SMA line also lend support to our current positive trading inclination. As we have yet to see a possible price exhaustion signal, we maintain our advice for traders to stay in long positions. We initiated these at USD59.20, or the closing level of 6 Dec 2019. For risk-management purposes, a stop-loss can be placed at the breakeven level. The immediate support is revised to USD60.00, a round figure that is also near 20 Dec 2019’s low. This is followed by USD57.70, which was the low of 6 Dec 2019. Towards the upside, the immediate resistance is set at USD63.38, ie the high of 16 Sep 2019. This is followed by USD66.60, which was the high of 23 Apr 2019.

Source: RHB Securities Research - 2 Jan 2020