Maintain long positions as the rebound is gathering pace. The WTI Crude ended the session stronger by USD3.02 at USD28.34. The closing level also placed the black gold above the previous immediate resistance of USD27.00 – signalling that the bulls continued to assert control for a second consecutive session. All in, we believe the commodity’s multi-week retracement has reached its interim low recently, with several failed attempts to breach below the USD19.00 mark – on the back of an oversold RSI reading. This means chances are high that it is in the process of developing a rebound phase. Maintain our positive trading bias.

As the rebound continued to flash out an encouraging signal, we recommend traders to stay in long positions. These were initiated at USD25.32, the closing level of 2 Apr. To manage the risk, a stop-loss can be placed at the breakeven level.

The immediate support is now eyed at USD27.00, derived from the latest candle. This is followed by USD23.50, also near the latest low. Towards the upside, the resistance point is now pegged at USD29.00, followed by USD30.30, 17 Mar’s high.

Source: RHB Securities Research - 6 Apr 2020