Maintain long positions. The WTI Crude saw demand emerging again yesterday, rising USD0.91 to settle at USD64.49. During the first trading session of the week, it started at USD63.64. However, seling pressure during the early session dragged the commodity towards the USD62.91 session low. Strong buying interest during the US trading hours lifted it towards the session high of USD64.68 before it closed at USD64.49. The long lower shadow pattern printed on the chart showed the bulls were accumulating near the USD63.00 level. It is likely that the WTI Crude may move sideways until the buying pressure accelerates to test the immediate resistance placed at USD65.47. As long as the commodity continues to trade above the USD62.00 support level, the 50-day SMA line will trend higher. Consequently, we stick to a positive trading bias.

We recommend traders hold on to the long positions initiated at USD63.86, or the closing level of 28 Apr. To manage risks, a stop-loss mark is placed at USD62.00. The nearest support remains at 28 Apr’s low of USD62.67, followed by the USD62.00 round figure.

The immediate resistance is seen at 29 Apr’s high of USD65.47 and followed by USD66.00.

Source: RHB Securities Research - 4 May 2021