Maintain short positions as bears are still reluctant to let go. The WTI Crude performed negatively in the latest trading session. It eased USD0.54 to settle at USD61.67. The session’s low and high were recorded at USD61.20 and USD63.18. The lacklustre session means the weak price trend that set off from the high of USD76.90 on 3 Oct is still extending. The 1-month sharp retracement has pushed the daily RSI further into an oversold reading of 22.63. Despite this relatively stretched decline, in the absence of a price reversal signal, chances are still tilted towards extension of the declining price trend. Hence, we are keeping our negative trading bias.

Until there are price signals to suggest a rebound is taking place, we continue to recommend traders 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 USD64.43 mark.

Immediate support is set at USD61.81, which was the low of 6 Apr. The second support is at USD60, a round figure. Moving up, the immediate resistance is at USD64.43, or the low of 16 Aug. This is followed by USD67.95, which was the high of 29 Oct.

Source: RHB Securities Research - 8 Nov 2018