Maintain short positions as there is no signs of deeper rebound developing. The WTI Crude ended the latest trading session positively. It gained USD0.56 to settle at USD56.25, this was after it swung between a low and high of USD55.13 and USD57.37. While the daily RSI reading is stretched into oversold territory, until we see further positive price actions or a reversal price pattern developing in the coming sessions, for now, we are considering the latest session merely as a sign of bears taking a breather. By extension, this implies that the negative price trend that started from the high of USD76.90 on 3 Oct is still firmly in place. Based on these, we are keeping our negative trading bias

As there is still lack of price evidence to suggest a deeper rebound is developing, 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 be placed above the USD59.35 mark, ie the high of 13 Nov.

Immediate support is set at USD55, a round figure. The second support is eyed at USD50, which is also a round figure. Conversely, immediate resistance is now set at USD58.07, the low of the 9 Oct. This is followed by USD61.81, the low of 6 April.

Source: RHB Securities Research - 15 Nov 2018