Maintain long positions. The WTI Crude experienced a volatile session. It started the day on a positive footing, progressively moving higher into European trading hours, before sharply retracing to a low of USD51.82. From the low, the commodity charged higher to end USD0.50 stronger at USD52.77. The positive session was in line with our forecast that the commodity has likely completed its 1.5-week narrow sideways correction phase, and is in the process of extending its multi-month upward move. Towards the upside, our expectation is for the commodity to make a second attempt to breach the USD54.00-USD55.00 resistance zone, some time this week. We maintain our positive trading bias.

We recommend traders stay in long positions. We initiated these at USD49.93, or the closing level of 5 Jan. To manage risks, a stop-loss can be placed at the breakeven level.

Immediate support is maintained at USD51.50, followed by USD50.00. On the upside, the immediate resistance is expected at USD54.00, followed by the USD55.00 threshold.

Source: RHB Securities Research - 26 Jan 2021