Maintain long positions. The WTI Crude extended its upward movement, climbing USD0.62 to close at USD70.91 – marking a fresh high for 2021. It started Friday’s session flat at USD70.10. After dipping to the day’s low of USD69.68, it progressed higher, breaching the USD70.00 level to reach the day’s high of USD71.24 before closing at USD70.91. With the latest session, the commodity has been rising for three consecutive weeks. It is on track to test the resistance levels pegged at USD71.00 and USD72.00. Given the strong bullish momentum, we expect a new record for 2021 to be achieved soon. As such, we hold on to our positive trading bias.

Traders are recommended to stick to the long positions initiated at USD66.05, or the closing level of 24 May. To manage risks, the trailing-stop threshold can be placed below the USD68.68 mark, or 10 Jun’s low.

The nearest support is marked at USD69.00, followed by the USD67.00 round number. On the upside, the immediate resistance is set at USD71.00, followed by USD72.00.

Source: RHB Securities Research - 14 Jun 2021