Keep long positions. The WTI Crude persisted its rally with another sharp increase yesterday as it jumped USD1.47 to settle at USD75.45 – printing its new 52-week high. The black gold commenced higher at USD74.19 to immediately propel upwards throughout the session, which saw the commodity hit the day’s peak at USD75.75 before retracing mildly at the close. The latest bullish candlestick – for a fourth consecutive session – was in line with our bullish expectation and amplified the bullish momentum in the medium term. Mild profit-taking may be seen above the immediate support of USD72.81 if it retraces. With the RSI rising near the 70% level, the positive strength is likely to persist in the immediate session until the WTI Crude reaches the overbought territory, ie above the 70% level. With that, we stay with our bullish trading bias with a higher trailing-stop threshold.

Traders should maintain the long positions initiated at USD67.54, or the closing level of 24 Aug. To manage risks, the trailing-stop mark is revised higher to USD72.81, or 24 Sep’s low.

The support levels are revised to USD72.81 – 24 Sep’s low – and USD69.75, which was 14 Sep’s low. The immediate resistance level is increased to USD76.00 and followed by the USD80.00 threshold.

Source: RHB Securities Research - 28 Sept 2021