Maintain long positions. The WTI Crude remains on track with its upward movement, despite inching USD0.03 lower yesterday to close at USD70.88. On the first trading session of the week, the commodity started at USD70.65 and progressed upwards to the day’s high of USD71.78. Mild profit-taking during the later part of the session saw the commodity retreating to the day’s low of USD70.65 just before closing at USD70.88. As it is still exhibiting a “higher highs with higher lows” pattern, we think the uptrend remains intact. Meanwhile, if the profit-taking extends, the commodity may retrace to the USD69.00 support level for consolidation. As long as the trailing-stop stays intact, we will keep our positive trading bias.

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

The nearest support remains at USD69.00, followed by USD67.00. On the upside, the immediate resistance is set at USD71.78, followed by USD72.00.

Source: RHB Securities Research - 15 Jun 2021