Maintain long positions. The WTI Crude has, at the minimum, found an interim support around the USD63.00 level. During the latest session, the commodity came in near to testing this threshold twice – the intraday low was posted at USD63.13 before ending USD0.43 higher at USD64.44. The positive price reactions from said support level is opening up the expectation of the WTI Crude extending its rebound following its previous two sessions’ pullbacks – which has since pushed the RSI down to a healthier non-overbought threshold. Overall, provided said support level does not fail, our overall positive assessment on the price trend will remain intact.

We recommend traders stay in long positions. We initiated these at USD49.93, or the closing level of 5 Jan. To manage risks, the stop loss can now be placed below the USD63.00 threshold.

Support levels are maintained at USD63.00 and USD62.00. Conversely, resistance levels are set at USD66.50 and USD68.00.

Source: RHB Securities Research - 11 Mar 2021