Maintain long positions. The WTI Crude again traded in a roller-coaster pattern. After starting the day on a negative tone – reaching a low of USD52.29 – the black gold rebounded to a high of USD53.25 before giving back all its gains during North America’s trading hours. It closed USD0.16 weaker at USD52,61. While the rebound off the USD51.50 support level over the latest three sessions has not been as strong as we had hoped for, we are still expecting the commodity to stage another attempt to break the USD54.00-55.00 resistance sometime this week. Towards the downside – provided the USD50.00 psychological level is not breached – the multi-month uptrend will still be considered as intact. Hence, 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.

The immediate support is set at USD51.50 and followed by the USD50.00 psychological level. Moving up, the immediate resistance is eyed at USD54.00 and followed by the USD55.00 threshold.

Source: RHB Securities Research - 27 Jan 2021