No price exhaustion signal spotted; maintain long positions. The WTI Crude tested the USD33.32 immediate resistance – with a USD33.44 high – before giving up some of the gains to close at USD32.50. Based on the commodity’s price actions over the two recent sessions, we believe it is likely developing a minor consolidation after recently breaching above the USD29.13 previous resistance. This implies we are not seeing the rebound – which set in following 21 Apr’s “Bullish Harami” – reaching an interim top. Additionally, the RSI reading is still well below the overbought threshold. Hence, we maintain our positive trading bias.

With no price exhaustion signal spotted, we maintain our long positions recommendation while moving the trailing-stop loss to below USD27.00. These positions were initiated at USD15.06, or the closing level of 29 Apr.

We are keeping the immediate support at USD30.50 – the price point of 18 May. This is followed by USD29.13, which was the high of 3 Apr. Conversely, the immediate resistance is set at USD33.32, ie the latest high. This is followed by USD36.35, or the high of 11 Mar.

Source: RHB Securities Research - 20 May 2020