Maintain short positions as the bulls are still being supressed. The WTI ticked up USD0.01 to close at USD53.27. This was after it swung between a low and high of USD52.91 and USD54.04. The commodity has been developing a relatively shallow rebound in recent sessions, after it tested the USD51.23 immediate support on 5 Jun – on the back of an oversold Daily RSI reading. For now, in order for a deeper rebound to develop, the black gold has to first overcome the USD54.52 mark, which is the trailing-stop for our ongoing short positions. Until this happens, we keep to our negative trading bias.

As the possibility of a deeper rebound developing is low for now, 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 pegged at USD51.23, or the low of 11 Feb. This is followed by USD50, a round figure. Towards the upside, 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 - 12 Jun 2019