Bulls are pushing the rebound, maintain long positions. The WTI Crude formed a white candle, which at the closing crossed above the previous immediate resistance of USD27.00. The black gold reached a low and high of USD27.18 and USD27.96, before closing at USD27.56. The positive performance means the commodity has broken away from its multi-session minor consolidation phase – indicating the counter-trend rebound following 21 Apr’s “Bullish Harami” formation is still firmly in place. Looking ahead, the USD29.13 mark is an important resistance for the bulls to cross – it was the previous daily high before the commodity resumed its decline in April which saw it reach the historic negative pricing. Maintain our positive trading bias.

As the rebound is showing signs of extending, we maintain our long positions recommendation while moving the trailing-stop loss to below USD23.00. These positions were initiated at USD15.06, or the closing level of 29 Apr.

We revised the immediate support to USD25.50 – the price point of the latest candle. This is followed by USD23.00. Towards the upside, the immediate resistance is now set at USD29.13 – the high of 3 Apr, followed by USD31.00 – the price point of 16 Mar.

Source: RHB Securities Research - 15 May 2020