Keep short, as the bears are still in control. The WTI Crude ended at USD66.94 last night and posted a USD2.23 loss. As a result, the commodity charted a long black candle that breached below the 50-day SMA line and also the previous USD67.03 support. This downside movement has put an end to the bullish bias we saw in 24 Jul’s “Bullish Engulfing” candlestick pattern. Technically speaking, the bears are in firm control of market sentiment. Based on the current technical landscape, we think the correction may still extend in the coming sessions.

In the absence of strong bullish development, we believe the correction is still firmly in play. At this juncture, it is best that traders continue to stay in short positions with a stop-loss above the USD71.10 level. This is in order to control the trading risks. For the record, we initially made the short call 12 Jul after a strong downside development below the USD72.83 mark.

Towards the downside, we set the immediate support at USD64.22, or the low of 5 Jun’s “Bullish Harami” pattern. The next support is now at the USD61.81 threshold, which was the low of 6 Apr 2018. Meanwhile, our immediate resistance is at USD67.03, ie the low of 17 Jul. If this level is taken out, the following resistance is found at USD71.10, which was obtained from the high of 20 Jul.

Source: RHB Securities Research - 9 Aug 2018