Maintain long positions. The WTI Crude ceased its latest session USD1.06 higher at USD42.67. The commodity’s price actions over the past week suggest that it is likely developing a minor consolidation around the 200-day SMA line, which that the bulls remain in good control over the upward move. As mentioned previously, price actions around this SMA line are critical in signalling the WTI Crude’s next price directional bias. In the absence of a price rejection signal from this line, we keep to our positive trading bias.

We advise traders to stay in long positions, which we initiated at USD41.96, or the closing level of 21 Jul. To manage the risks, a stop-loss can now be placed below the USD41.00 mark.

The immediate support is revised to USD41.50, which was near the lows of 11 and 12 Aug. This is followed by the USD40.00 round figure. Conversely, the immediate resistance is now eyed at USD42.95, ie near the highs of 11 and 12 Aug. This is followed by USD43.52, which was derived from 5 Aug’s high.

Source: RHB Securities Research - 13 Aug 2020