RHB Research is maintaining ‘LONG’ positions WTI Crude futures.
The WTI Crude closed higher at USD109.77 as it inched up USD1.51 last Friday – eyeing to move beyond the USD110.00 immediate resistance. The commodity began the session positively at USD108.70 and then fell to hit the day’s low at USD107.24 before rising towards the USD111.18 day high – it then pulled backt o settle below the immediate resistance at USD109.77. The three consecutive sessions of bullish candlesticks above the 50-day average line depicts the strong buying pressure above that line in the medium term.
Despite facing selling pressure at the USD110.00 resistance, the RSI indicator is showing improving strength towards the 60% level. Hence, the research house is expecting a bullish breakout in the coming sessions. In the event the WTI Crude reverses towards below the 50-day average line or USD104.87, it may then retrace towards the USD100.00 psychological support. As of now, we stick to a positive bias amid the current uptrend movement.
Traders of this futures are advised to maintain the long positions initiated at USD107.81 or the close of 4 May. To manage the trading risks, the initial stop-loss threshold is revised lower to the USD100.00 psychological support. The immediate support is set at USD100.00 and followed by USD93.53, i.e. the low of 15 Mar. On the upside, the first resistance is sighted at USD110.00 and followed by the higher hurdle of USD116.64, which was the highest point on 24 March.
