Maintain short positions while keeping trailing-stop even tighter. The WTI Crude ended the latest trading on a negative note. It eased USD0.48 to settle at USD60.19. The session’s low and high were recorded at USD59.26 and USD60.79. The soft session is suggesting the commodity’s steep retracement – which started from the high of USD76.90 on 3 Oct – is still developing, and not showing signs of exhaustion. While the daily RSI reading of 19.73 means the said retracement has reached an oversold level, without price action to confirm for a possible rebound to set in, the overall negative trading posture is still firmly in place.

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 USD62.42 mark.

Immediate support is revised to USD60, a round figure. This is followed by USD58.07, the low of 9 Feb. Moving up, immediate resistance is set at USD61.81, the low of 6 April. The following resistance is at USD63.59, which was the low of 18 Jun.

Source: RHB Securities Research - 12 Nov 2018