RHB Research has maintained its positive trading bias on West Texas Intermediate (WTI) crude oil as prices extended their rebound for a second consecutive session, with renewed momentum potentially driving the commodity towards the US$87 resistance level.
WTI crude climbed US$1.30 to close at US$83.53, forming a bullish candlestick for the second straight session.
The benchmark opened at US$82 before falling to an intraday low of US$80.65. Buying momentum subsequently strengthened, pushing WTI to a session high of US$84.27 before it settled at US$83.53.
RHB said the latest price action indicates renewed bullish momentum, with crude oil now looking to extend its recovery towards the immediate resistance at US$87.
A decisive breakout above US$87 could improve market sentiment and reinforce the bullish technical structure, potentially paving the way for a move towards the next resistance level at US$93.
On the downside, RHB identified US$80 as the immediate support level, which is expected to provide a buffer against renewed selling pressure.
Should WTI fall below that level, the next support is seen at US$75.
With the bulls currently remaining in control, the research house maintained its positive trading bias on the commodity.
RHB recommended traders retain the long position initiated at US$87.83, based on the closing price on Aug 20.
The stop-loss threshold remains at US$80 to manage downside trading risks.
Overall, RHB sees WTI’s immediate technical range between support at US$80 and resistance at US$87, with the subsequent downside and upside levels positioned at US$75 and US$93, respectively.
The research house expects the near-term technical outlook to remain constructive as long as WTI holds above the US$80 support level, while a break above US$87 would provide further confirmation of strengthening bullish momentum.
