Maintain long positions. The WTI Crude again rebounded from the USD64.00 psychological level yesterday, adding USD0.36 to settle at USD65.28. After the commodity started at USD64.90, the early session was choppy, which sent the WTI Crude towards the USD63.68 day low. Strong demand emerged during the US trading hours, lifting it towards the day high of USD65.50 – it closed at USD65.28. This has reaffirmed that USD64.00 will act as a strong psychological level. The black gold will consolidate above this level before it can retest the upside resistance. With the trailing stop staying intact, we are keeping to our positive trading bias.

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

The nearest support remains unchanged at USD64.50 and followed by USD63.90 – the low of 7 May. The immediate resistance set at USD65.30, followed by the USD66.70 round figure.

Source: RHB Securities Research - 12 May 2021