RHB Investment Bank Bhd (RHB Research) has maintained a long position call on WTI Crude, following its positive performance on Monday, where the commodity surged US$2.25 to close at US$78.82. The strong bullish momentum comes after the commodity opened at US$76.54 and rose to an intraday high of US$79.27 before closing.
This marks a second consecutive bullish candlestick, confirming WTI Crude's position above the 200-day SMA line. The Relative Strength Index (RSI) is also trending upwards, indicating further positive price action in the coming sessions.
RHB Research expects WTI Crude to test the US$80 resistance, with a potential for fresh buying interest should it break this level. The analysts have highlighted a strong support level at US$73, with further support expected at US$70. The current bullish momentum, combined with the commodity's ability to remain above critical technical levels, suggests the potential for further upside movement.
Traders are advised to maintain their long positions established at the close of Jan 2, at US$73.13, with a stop-loss set at US$70 to manage downside risks.
The immediate resistance for WTI Crude is pegged at US$80, with further resistance at US$83. As long as the commodity holds its ground above the key support levels, RHB Research maintains its positive trading outlook for WTI Crude.
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