Maintain long positions. While the WTI Crude traded in a moderate range of USD47.17 and USD47.94, intraday price actions were very volatile, taking an imperfect ‘N’ shape. Towards the end of the session, the bulls prevailed, pushing the commodity USD0.20 higher to USD47.82 – and thus extending its winning streak into the third session. The volatile intraday performance can be seen as a process of validating the prior session’s breakout from the minor price congestion area. While we continue to take note of the overbought RSI reading, in the absence of a price reversal signal, the thesis for the black gold extending its upward move stays intact. We maintain our positive trading bias.

We recommend that traders stay in long positions. We initiated these at USD47.62, which was the closing level of 15 Dec. To manage risks, a stop-loss can be placed below the USD46.50 threshold.

The immediate support is maintained at USD46.50, near 15 Dec’s low, followed by USD45.69. Meanwhile, the overhead resistance is set at USD48.66, or the high of 3 Mar, and followed by the USD50.00 round figure.

Source: RHB Securities Research - 17 Dec 2020