Stay short in line with the ongoing bearish bias. Last night, the WTI Crude inched up USD1.44 to USD70.13, and formed a white candle. Nevertheless, this minor increase does not change our bearish view. As long as the commodity is unable to break above the USD71.10 mark, we believe that the bulls are still unable to wrest control from the bears. At this juncture, the bearish bias in the appearance of 11 Jul’s “Bearish Engulfing” candlestick pattern remains in play.

The daily chart above shows that correction has not reached its limit yet. As such, we advise traders to maintain short positions. In order to minimise the trading risk, it is best to lock a stop-loss above the USD71.10 threshold. For the record, our short call was initially triggered on 12 Jul. This was after the WTI Crude’s price dropped below the USD72.83 mark.

We keep the immediate support at USD67.03, obtained from the low of 17 Jul. This is followed by the USD64.22 support mark, or the low of 5 Jun’s “Bullish Harami” pattern. On the flip side, our immediate resistance is at USD71.10, located at the high of 20 Jul. This is followed by the next resistance at the USD72.83 threshold, which was the high of 22 May.

Source: RHB Securities Research - 31 Jul 2018