Maintain long positions. After the recent peak, the WTI Crude’s uptrend decelerated yesterday, closing just USD0.12 higher at USD80.64. The commodity began neutral at USD80.50 before experiencing volatility throughout the session, ie it whipsawed in an uptrend fashion towards the end of the European sessions – which saw intense volatily as it plummeted towards the day’s low of USD79.47 before swiftly bouncing off to hit the day’s high of USD81.62 – only to fall and pare most of the intraday gains towards the closing, ie just above the opening. The “doji” neutral candlestick suggests that the crude oil may move sideways between the USD82.18 resistance and USD79.55 support in the immediate term before firming up its direction. Also, since the latest RSI strength is neutral above the 70% overbought territory level, there is a higher chance for profit taking to take place in the coming session. We still keep to our bullish trading bias, until the trailing-stop level is breached.

We suggest traders stick to their long positions initiated at USD67.54, or the closing level of 24 Aug. For trading-risk management, the trailing-stop threshold is set at USD79.55, ie the immediate support.

The support levels are pegged at USD79.55 – 11 Oct’s low – and USD74.96, or 7 Oct’s low. The resistance level is set at USD82.18, or 11 Oct’s high. Subsequently, a higher resistance is drawn at the USD90.00 level.

Source: RHB Securities Research - 13 Oct 2021