Maintain short positions as there are still no signs developing for a deeper rebound. The WTI Crude failed to hold on to its earlier session’s positive tone. It slid from a high of USD54.84 to a low of USD53.05, before ending USD0.73 lower at USD53.26. Despite its recent rebound – after briefly testing the immediate support of USD51.23 recently, on the back of an oversold Daily RSI reading – the black gold has yet to produce strong price actions to suggest a deeper rebound is on the cards. Towards the upside, a firm breach of USD54.52 could indicate a stronger rebound is likely to take place. Until this happens, we keep to our negative trading bias.

As the negative bias is still not showing clear signs of reversing, 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.

Towards the downside, immediate support is set at USD51.23, or the low of 11 Feb. This is followed by USD50, a round figure. Meanwhile, immediate resistance is eyed 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 - 11 Jun 2019