Initiate long positions as the commodity signals a possible rebound. The WTI Crude had a strong session in the latest trading. At the closing, the black gold added USD5.01 to settle at USD25.32. The closing price means the previous resistance points of USD22.00 and USD24.00 were crossed. This could mean the multi-week retracement has reached an interim low and that the commodity is in the process of staging a rebound. This rebound set in after the RSI flashed out an oversold reading recently. Hence, we switch our trading bias to positive.

Our previous short positions initiated at USD31.50, or the closing level of 12 Mar, were closed out at USD24.00 in the latest session. To tag the expected rebound, we initiate long positions at the latest close. To manage the risk, a stop-loss can be placed below the USD23.50 mark.

The immediate support is revised to USD23.50, followed by USD21.50 – both are price points of the latest session. Moving up, we place the immediate resistance at USD27.00, followed by USD29.00.

Source: RHB Securities Research - 3 Apr 2020