Maintain short positions while moving the trailing-stop lower. The WTI Crude ended the latest session on a positive note. Session’s low and high were posted at USD52.62 and USD54.32, before closing at USD53.99, indicating a gain of USD1.40. The commodity has been rebounding over the recent sessions, this came after it tested the immediate support of USD51.23 on 5 Jun – on the back of an oversold Daily RSI reading. Should the commodity be able to cross above the USD54.52 level in the coming sessions, chances are high that an interim low has been achieved and that a deeper rebound could be developing. Until we see signs of this emerge, we maintain our negative trading bias.

Until signs for a deeper rebound appear, 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 now be placed at above USD54.52.

Immediate support is kept at USD51.23, or the low of 11 Feb. This is followed by USD50, a round figure. Moving up, immediate resistance is set 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 - 10 Jun 2019