Maintain long positions. The WTI Crude has bounced off the USD64.00 psychological level, rising USD0.19 to settle at USD64.90. It initially opened Friday’s session stronger at USD64.90 and rose to the USD65.24 day high during the Asian trading hours. However, the commodity fell to the day low of USD63.90 during Europe’s trading hours, only to see buying interest emerging near USD64.00 to bring it higher – it closed at USD64.90, forming a “long-legged doji” bullish pattern. The long lower shadow indicates the bulls were acummulating near USD64.00. With this technical signal, the WTI Crude should trade higher from this point. Falling below USD64.00 may see sentiment being tainted, and the commodity could revert to a correction phase. Since the trailing stop is intact, we maintain our positive trading bias.

We recommend traders retain the long positions initiated at USD63.86, or the closing level of 28 Apr. To manage risks, the trailing-stop level is set at USD64.00.

The nearest support is established at USD64.50 and followed by USD63.90, ie the low of 7 May. The immediate resistance is set at USD65.30, followed by the USD66.70 whole number

Source: RHB Securities Research - 10 May 2021