RHB Retail Research

WTI Crude: Struggling to Build An Interim Base

Publish date: Fri, 12 Nov 2021, 04:24 PM
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RHB Retail Research

Keep long positions. The WTI Crude attempted to pause the recent bearish momentum yesterday as it bounced off from the intraday low to close USD0.25 higher at USD81.59 – amid a pullback from the intraday high. The commodity moved in a highly volatile fashion, opening at USD81.41 and oscillating sideways ahead of the European trading session. A whipsaw session followed when strong buying momentum emerged to lift the commodity higher before swiftly reversing to hit the day’s low at USD80.20. It then bounced off strongly again – this time higher towards the day’s high of USD82.33 prior to a strong pullback towards the end of the session, closing at USD81.59 – slightly above Wednesday’s close. The neutral candlestick with a long lower shadow yesterday shows the commodity is in the midst of forming an interim base to rebound higher towards the USD83.08 resistance. Unless the bearish momentum re-emerges to trigger the stop-loss, we stick to our positive trading bias.

We recommend traders to stay in the long positions initiated at USD84.15 – the closing level of 9 Nov. To manage trading risks, the intital stop-loss level is set below the USD80.00 level.

The support levels are still at USD80.00, and USD78.25 – 4 Nov’s low. The nearest resistance level is pegged at USD83.08, followed by USD85.41 – 25 Oct’s high.

Source: RHB Securities Research - 12 Nov 2021

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