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WTI Crude Bulls Push Higher, But Analysts Warn Of Strong Resistance Ahead

Business Today ·  02:55

WTI Crude continued its upward momentum on Tuesday, climbing US$0.23 to close at US$69.39. The commodity began the session at US$69.01, fluctuating between a high of US$69.69 and a low of US$68.45 before closing at its daily peak.

Despite the "higher high" closing, which followed a recent Bullish Engulfing candlestick, RHB Investment Bank Bhd (RHB Research) maintains a cautious outlook.

The bullish momentum is still in question, as the Relative Strength Index (RSI) remains below 50%, indicating soft upward momentum. The outlook could improve if WTI Crude surpasses the 50-day SMA line and continues its rise, but RHB Research anticipates strong resistance at US$72, as this level has historically proved challenging for a bullish trend in a bearish market setup.

Although a bullish reversal pattern has formed, RHB Research maintains a negative trading bias until WTI Crude breaks the US$76 resistance level. Traders are advised to keep short positions initiated at the close of 15 October, when the price was US$70.58, with a stop-loss set at US$76.

Immediate support is at US$64, followed by US$60, while the first resistance is seen at US$72, with a higher resistance at US$76.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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