Keep long positions. The WTI Crude closed mildly positive in a whipsaw session yesterday, as it settled USD0.20 higher at USD75.03, paring all intraday losses to close positively. The commodity began at USD74.78 and oscillated moderately until the Asian trading session, where high volatility dominated this period. The WTI Crude then fell strongly towards the day low of USD73.14 before reversing the trend by propelling higher towards the USD76.07 day peak. It then retraced firmly to close at USD75.03. The white body candlestick with long lower shadow, which bounced off the immediate support, suggests strong buying pressure has emerged above the USD72.81 support, signifying that the recent pullback will be temporary. Backed by the strengthening of the RSI above the 60% bullish region, this solidifies the view that the pullback may turn to a positive rebound in the immediate term. Unless the trailing-stop mark is breached, we maintain our bullish trading bias.

Traders should stick to the long positions initiated at USD67.54, or the closing level of 24 Aug. To manage risks, the trailing-stop threshold is set at USD72.81, or 24 Sep’s low – the immediate support.

The support levels are fixed at USD72.81 – 24 Sep’s low – and USD69.75, ie 14 Sep’s low. The immediate resistance level is pegged at USD76.67 – 28 Sep’s high – before marking the 52-week high at the USD80.00 threshold.

Source: RHB Securities Research - 1 Oct 2021