RHB Retail Research

WTI Crude: Propelling Above the USD90.00 Mark

Publish date: Fri, 04 Feb 2022, 09:54 AM
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RHB Retail Research

Maintain long positions. The WTI Crude persisted with its bullish momentum yesterday, gaining USD2.01 to settle at USD90.27, ie above the USD90.00 mark. The black gold opened at USD87.98 and then moved southwards towards the USD86.75 intraday low during the European trading session. However, strong buying interest emerged to uplift the commodity as it propelled towards the USD90.45 intraday high before the close. The latest bullish candlestick above the USD90.00 mark indicates strong buying momentum amid the “higher high” bullish pattern above that level. Coupled with a strong RSI pointing above the 70% level, we expect the bullish bias to remain in the medium term with potential mild profit-taking in the coming sessions. As such, we stick to our positive trading bias.

We recommend traders keep to the long positions initiated at USD73.79 or the closing level of 23 Dec 2021. For risk management, the trailing-stop threshold is set at USD85.41.

The immediate support is pegged at USD90.00 and followed by USD87.91, which was 19 Jan’s high. Conversely, the immediate resistance is at the USD95.00 mark and followed by the USD100.00 psychological level.

Source: RHB Securities Research - 4 Feb 2022

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