Maintain short positions as negative bias is still in place. The WTI Crude ended the latest session positively. It added USD0.23 to settle at USD52.51. This was after it traded in the range of USD51.70 and USD52.98. The commodity has been trading in a relatively narrow sideways consolidation pattern over the past two weeks. This was after it experienced a multi-week decline, which saw its Daily RSI hit an oversold reading. As there are no clear signs to indicate that the retracement leg that started from 23 Apr’s high of USD66.60 has reached an end, we stick to our negative trading bias.

As the bulls are still not able to wrest the control from the bears, 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 trailing-stop is placed above USD54.84.

Immediate support is pegged at USD50, a round figure. This is followed by USD44.35, which was the low of 2 Jan. On the other hand, the immediate resistance is now pegged at USD54.84, the high of 10 Jun, followed by USD59.70, which was the high of 30 May.

Source: RHB Securities Research - 17 Jun 2019