Maintain long positions. The WTI Crude continued to show signs of lacking momentum and trading in a relatively narrow range, indicating that the market is likely waiting for fresh catalysts. The latest session saw the black gold reaching a low and high of USD40.30 and USD41.08, before closing USD0.28 higher at USD40.90. While there was a lack of momentum, there were no signals of price reversals. Hence, we are keeping our positive trading bias for now.

We maintain our recommendation for traders to stay in long positions. We initiated these at the USD39.82 threshold, which was the closing level of 1 Jul. To manage risks, a stop-loss can now be placed at the breakeven mark.

Immediate support is maintained at USD39.00, near 1 Jul’s low. This is followed by USD37.00, which is close to the low of 18 Jun. Moving up, the immediate resistance is eyed at USD41.63 – the high of 23 Jun – and followed by USD43.32, or the low of 2 Mar.

Source: RHB Securities Research - 9 Jul 2020