Keep in short positions as market sentiment is still bearish. Last night, the WTI Crude inched up USD0.28 to USD66.64. Nevertheless, there is no change to our bearish view, as no strong upside development is in sight yet. As a result, the momentum in the reversal “Bullish Harami” candlestick pattern on 5 Jun remains unconfirmed. Technically speaking, we think that market sentiment is still weak, in line with the ongoing 3-week correction. We also highlight that the 14-day RSI indicator is currently fluctuating below the 50-pt neutral level at 45.55 pts. This implies that market sentiment is weak – which enhances our downside view.

The current technical landscape suggests that opportunities still lean more towards the sellers. As such, we maintain our short recommendation. In order to secure part of the trading profits, traders are advised to set a new trailing-stop above the USD66.66 mark. This is in line with our initial short call on 28 May, following a firm breach below the USD69.56 threshold.

Towards the downside, our immediate support is maintained at USD64.24, which was the high of 27 Feb’s “Bearish Engulfing” pattern. This is followed by the USD61.81 support mark, located at the low of 6 Apr 2018. Conversely, the immediate resistance stays at USD66.66, or the high of 25 Jan. The next resistance is pegged at USD69.56, obtained from 17 Apr’s high.

Source: RHB Securities Research - 14 Jun 2018