Maintain long positions. The WTI Crude staged a strong rebound yesterday, climbing USD0.87 to settle stronger at USD76.08. The commodity initially started off at USD75.69 but then experienced strong profit taking, which resulted in a correction to the session’s low of USD74.27. However, strong buying momentum propelled it towards the session’s high of USD76.46 before concluding the first trading session of 2022 at USD76.08. The latest session’s long lower shadow indicates the bulls still have a technical advantage. With the RSI improving above the 56% level, the renewed momentum may lift the commodity over the 50-day SMA line. If this happens, it will continue to climb towards the next resistance at USD79.23. As such, we hold on to our positive trading bias until the stoploss is breached.

Traders are recommended to retain the long positions inititated at USD73.79, or the closing level of 23 Dec. To manage trading risks, the initial stop-loss is placed at the USD72.93 support.

The immediate support is fixed at USD74.76 (22 Nov’s low), and USD72.93 – 29 Nov’s high. The immediate resistance is eyed at USD79.23 (24 Nov’s high), followed by USD81.81, or the high of 16 Nov.

Source: RHB Securities Research - 4 Jan 2022