Maintain long positions. After taking a breather on Monday, the WTI Crude resumed its upward movement yesterday, surging USD1.40 to settle at USD67.72. After it opened at USD66.68 – touching the USD66.41 day low – the commodity climbed towards the day high of USD68.87 before settling in at USD67.72 – at one point it even breached the USD68.00 resistance. Since the RSI is trending higher above the 50% threshold, we think the WTI Crude will retain the bullish momentum and re-test the USD68.00 resistance level again. Breaching this level will see the commodity making a new high for 2021. Meanwhile, the 50-day SMA line is curving higher to support the WTI Crude’s upward movement. With the renewed momentum, we maintain our positive trading bias.

Traders should keep the long positions initiated at USD66.05, or the closing level of 24 May. To manage risks, the stop-loss threshold is set at USD63.90.

The nearest support revised to USD66.17, or the low of 28 May, followed by USD65.25 – 26 May’s low. Meanwhile, the immediate resistance is seen at USD68.00, followed by the USD69.00 whole number.

Source: RHB Securities Research - 2 Jun 2021