Maintain long positions. The WTI Crude extended its bullish momentum yesterday, surging USD1.11 to settle at USD68.83. After opening at USD67.99, it drifted lower towards the day’s low of USD67.78 before jumping to the day’s high of USD69.00. It then pared its gains to close at USD68.83 – crossing above the previous resistance level of USD68.00 and recording a new high for 2021. If the black gold manages to sustain above USD68.00, it is very likely that we will see positive momentum lifting it higher to retest the recent high of USD69.00, and eventually challenging the USD70.00 psychological level. While we stay optimistic on the current upward movement, we do not rule out the possibility of mild profit-taking in coming sessions. As long as it continues to scale higher with the “higher highs and higher lows” formation, we retain our positive trading bias.

Traders should stick to the long positions initiated at USD66.05, or the closing level of 24 May. To manage risks, the trailing-stop is placed at USD66.41, the low of 1 Jun.

The nearest support is revised to USD66.41, or the low of 1 Jun, followed by USD65.25 – 26 May’s low. Conversely the immediate resistance is seen at USD69.00, followed by the USD70.00 psychological level.

Source: RHB Securities Research - 3 Jun 2021