There is no change to our short call, as the bears bias is still intact. At the end of yesterday’s session, the WTI Crude posted a USD0.68 loss to USD65.54. Presently, we believe that the bears are still in firm control of market sentiment. Although a reversal “Bullish Harami” candlestick pattern appeared on 5 Jun, there was no strong upside development has been sighted. We also highlight that the 14-day RSI indicator is fluctuating below the 50-pt neutral level at 43.66 pts, implying that market sentiment is weak. This negative indicator enhances our downside view.

As such, we maintain our short recommendation. In order to lock in part of the trading profits, it is best that traders set a trailing-stop above the USD67.16 threshold. This follows our initial short call on 28 May after the commodity’s price dropped firmly below the USD69.56.

Towards the downside, we keep the immediate support at USD64.24, or the high of 27 Feb’s “Bearish Engulfing” pattern. The following support is found at USD61.81, obtained from the low of 6 Apr. Conversely, our immediate resistance is maintained at USD67.16, which was the high of 14 Jan. The next resistance is seen at USD69.56, located at the high of 17 Apr.

Source: RHB Securities Research - 22 Jun 2018