Maintain long positions. After the recent pullback, the WTI Crude reversed upwards yesterday as it inched up USD0.95 to settle at USD69.30 while attempting to cross above the immediate resistance and 50-day SMA line. The commodity started with a neutral tone at USD68.37, but then touched the USD68.31 day low before jumping off strongly northwards where it hit the USD69.75 day peak during the early US trading session. It retraced lower at the close. Yesterday’s white body candlestick with long upper shadow, which formed a “higher low” bullish structure, signals a renewed positive momentum that is in line with our medium-term bullish outlook. Coupled with the RSI edging higher above the 50% level, we expect the bullish momentum to resume in the coming sessions. Hence, we maintain our bullish trading bias until the stop-loss threshold is breached.

Traders should stay in the long positions initiated at USD67.54, or the closing level of 24 Aug. To mitigate risks, the stop-loss mark is marked at USD67.12, ie 1 Sep’s low.

The support levels are fixed at USD67.12, or 1 Sep’s low, and USD65.01 – 20 Jul’s low. The nearest resistance level is pegged at USD69.62, which was 12 Aug’s high. This was then followed by USD74.23, or 30 Jul’s high.

Source: RHB Securities Research - 9 Sept 2021