Maintain long positions. The WTI Crude rebounded from the recent pullback as it attempted to surpass the immediate resistance last Friday – gaining USD3.22 to settle at USD93.10. The commodity started the session at USD90.00 and retraced mildly towards the day’s low at USD89.19 during the mid-Asian trading session. Buying interest picked up later to lift the WTI Crude upwards until the end of the session. It climbed towards the USD94.66 day’s high before retracing towards the close at USD93.10 – just inches below the immediate resistance of USD93.17. The printed long white candlestick indicates the bulls are capped by the immediate resistance and expected to retrace below it in the coming sessions. This is supported by the divergence of the RSI, which is pointing at a lower level than the recent peak. Nevertheless, we expect the bullish momentum to regain in the medium term after the mild retracement occurs. With that in mind, we keep to our bullish trading bias.

Traders are recommended to maintain the long positions initiated at USD73.79 or the closing level of 23 Dec 2021. To manage the trading risks, the trailing-stop threshold is revised higher to USD87.91, ie the high of 19 Jan.

The immediate support is marked at USD87.91 – 19 Jan’s high – and followed by USD85.41. Meanwhile, the first resistance is pegged at USD93.17 – 4 Feb’s high – and followed by the USD95.00 whole number.

Source: RHB Securities Research - 14 Feb 2022