Maintain short positions until clearer rebound signals appear. The WTI Crude ended the latest session on a positive note. At the closing, it added USD0.96 to settle at USD47.20. The session’s low and high were recorded at USD45.93 and USD48. For now, we still consider the downtrend that started from the high of USD76.90 on 3 Oct as still developing. While we note that the daily RSI is flashing an oversold reading, we are keeping our negative trading bias until there are clearer price actions to suggest that a stronger rebound is in place – in this case, a firm upside break of the immediate resistance of USD49.41.

With the overall downtrend still firmly intact, we continue to recommend traders to keep to short positions that were initiated at USD46.14, the closing level of 19 Dec. A stop-loss can be placed at above USD49.41.

Immediate support is expected at the USD45.58 threshold, which was the low of 31 Aug 2017. Breaking this support may see market test USD43.65, the low of 10 Jul. On the other hand, immediate resistance is expected at USD49.41, ie the low of 29 Nov. This is followed by USD54.55, the high of 4 Dec.

Source: RHB Securities Research - 20 Dec 2018