Maintain short positions while keeping trailing-stop tight. The WTI Crude eased in yesterday’ session. For the intraday, the commodity generally trended lower from a high of USD67.26 to a low of USD65.33, before it settled USD0.86 weaker at USD66.18. The weak session continues to signal that the commodity’s weak price trend is extending and that the 200-day SMA line can be seen as breached – albeit marginally. The weak daily RSI reading of 33.71 is also supporting the weak bias. For now, until there are signal actions to indicate a deeper rebound is developing, we are keeping our negative trading bias.

Given that the weak price trend is extending and not showing any early signal of ending, we continue to recommend traders to keep to short positions. We initiated short positions at USD70.97, which was the closing of 11 Oct. For risk management purposes, a stop-loss can now be placed above the USD67.95 mark.

Immediate support is maintained at USD64.43, or the low of 16 Aug. This is followed by USD61.81, which was the low of 6 Apr. Towards the upside, the immediate resistance is now expected at USD67.95, which was the high of 29 Oct. This is followed by USD69.66, the 23 Oct’s high.

Source: RHB Securities Research - 31 Oct 2018