Maintain short positions until bulls are able to establish firmer control. The WTI Crude ended the latest session on a positive tone, gaining USD1.13 to close at USD46.54. The session’s low and high were registered at USD44.35 and USD46.54. For now, the commodity’s recent sessions’ price actions are regarded as just a minor consolidation from the downtrend that started to develop from the high of USD76.90 on 3 Oct 2018. For now, we believe a deeper rebound may take place, but the immediate resistance of USD49.41 needs to be recaptured decisively. Until this happens, we are keeping our negative trading bias.

As there are no indications that the downtrend has reached an end, 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 above USD49.41.

Immediate support is now expected at the USD42.36, which was the low of 24 Dec 2018. This is followed by USD40, the next round figure. Conversely, the 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 - 3 Jan 2019