Maintain short positions as the bearish bias is still exerting itself. The WTI Crude inched down USD0.34 to close at USD68.53 last night. It left a black candlestick pattern after oscillating between a low of USD68.21 and high of USD69.20. This shows that yesterday’s session was led by the sellers. Presently, we do not see any strong upside development. Technically speaking, the bearish bias that we highlighted since he appearance of 11 Jul’s “Bearish Engulfing” candlestick pattern remains in play. Overall, our downside view continues.

The current technical landscape suggests that opportunities are still leaning more towards the sellers. Hence, we reiterate our short call with a stop-loss set above the USD71.10 mark to minimise the upside risk. Recall that we initially made the short call on 12 Jul. This was after the strong downside development below the USD72.83 threshold.

To the downside, our immediate support is maintained at USD67.03, derived from the low of 17 Jul. The following support is pegged at USD64.22, or the low of 5 Jun’s “Bullish Harami” pattern. Meanwhile, we keep the immediate resistance at USD71.10, located at the high of 20 Jul. For the next resistance, look to USD75.27, ie 3 Jul’s high.

Source: RHB Securities Research - 29 Aug 2018