Bears remain in firm control; maintain short positions. The WTI Crude ended its latest session on the weak side. The commodity is now trading in the support zone between USD51.23 and USD54.52 – the latter was the previous immediate support, which was breached in the latest session. It generally trended lower for the whole session – from a high of USD59.61 to a low of USD53 – before ending USD3.09 lower at USD53.50. While the retracement that started from the high of USD66.60 on 23 Apr is now reaching an oversold level, in the absence of price reversal signals from said support zone, we keep our negative trading bias.

As the bulls are still on the retreat, we retain our recommendation for traders to stay in short positions. These were initiated at USD61.81, or the closing level of 2 May. For risk-management purposes, a stop-loss can be placed at above USD59.70.

The immediate support is revised to USD51.23, or the low of 11 Feb. This is followed by USD50, a round figure. Meanwhile, we are keeping the immediate resistance at USD59.70, which was the high of the latest session. This is followed by the USD63.81 level, ie the high of 20 May.

Source: RHB Securities Research - 3 Jun 2019