Maintain long positions. The WTI Crude retraced for the second consecutive session. After trending downwards in the early part of the Asian trading hours, the commodity traded sideways for the rest of the session – before closing USD1.28 lower at USD59.24, slightly below the previous immediate support of USD59.30. As mentioned in our recent reports, the black gold was likely to develop a consolidation phase following its sharp gains during the previous 2.5 weeks, which had pushed the RSI into overbought zone. Towards the downside – provided that the USD59.00 trailing-stop for our ongoing long positions is not breached at the closing – we keep 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 now be placed below the USD59.00 level.

Support levels are revised to USD58.50, followed by USD57.41. The immediate resistance is now pegged at USD60.50, followed by USD62.26 - the high of 18 Feb.

Source: RHB Securities Research - 22 Feb 2021