Maintain long positions. For the fifth consecutive session, the WTI Crude attempted to cross the immediate resistance of USD43.52, with a high of USD43.57. This was before it slid to settle USD0.36 lower at USD42.61. The negative price action, from the said resistance, did not produce a clear price rejection signal that could point to a potential deeper price retracement. Moreover, the commodity is still trading within the recent sessions’ price range. Towards the downside, provided that the immediate support level of USD41.50 – which is also located near the 200-day SMA line – is not breached, we will be keeping our positive trading bias.

We advise traders to remain in long positions, which we initiated at the USD41.96 mark, or the closing level of 21 Jul. To manage risks, a stop-loss can now be placed below the USD41.50 mark.

The immediate support remains at USD41.50, which is near the lows of 11 and 12 Aug. This is followed by the USD40.00 round figure. Conversely, the immediate resistance is eyed at USD43.52, which was derived from 5 Aug’s high, followed by USD45.00.

Source: RHB Securities Research - 1 Sept 2020