Maintain short positions as the multi-week correction phase is still developing. The WTI Crude continued to trade in a weak posture in the latest session. It ended USD0.25 lower at USD53.25, session’s low and high were at USD52.11 and USD54.63. The negative session continued to place the commodity within the support zone between USD51.23 and USD54.52 – the latter was the previous immediate support. While the Daily RSI slid deeper into oversold reading (22.98), in the absence of a price reversal signals from the said support zone, to mark an interim low, we are keeping our negative trading bias.

Given that the multi-week correction phase is still not showing signs of hitting an end, 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 riskmanagement purposes, a stop-loss can be placed at above USD59.70.

The immediate support is set at USD51.23, or the low of 11 Feb. This is followed by USD50, a round figure. On the other hand, immediate resistance is expected at USD59.70, which was the high of 30 May. This is followed by the USD63.81 level, ie the high of 20 May.

Source: RHB Securities Research - 4 Jun 2019