Maintaining long positions. The WTI Crude sustained its breakout from the multi-month consolidation phase during the latest session, validating the case for the commodity extending its rebound from May’s lows. On an intraday basis, the commodity generally trended higher for the entire session, albeit with a softer momentum. The low and high were seen at USD44.73 and USD46.26, before it closed USD0.80 higher at USD45.71. While the commodity’s sharp upward move, over the past week or so, has pushed the RSI into the overbought threshold, price actions remain strong – no signals of a correction yet. Hence, we are keeping our positive trading bias.

We recommend traders stay in long positions. We initiated these at USD44.91 – the closing level of 24 Nov. To manage risks, a stop-loss can be now placed at the breakeven mark.

Immediate support is revised to USD44.50, followed by USD43.50. Towards the upside, the immediate resistance is revised higher to USD47.57 – the high of 5 Mar. This is followed by USD48.66 – the high of 3 Mar

Source: RHB Securities Research - 26 Nov 2020