Bears are taking a rest; maintain short positions. The black gold settled USD0.17 better at USD57.51 in the latest trade. This was after it swung between USD56.29 and USD57.82. The second consecutive positive session can be seen as a sign that a minor consolidation is taking place. This was after the relatively sharp price rejection from the 200-day SMA line on 2 Jul. For now, as long as the commodity is still capped by the said SMA line, the trading bias would stay negative.

As the bulls are still not able to show control over the price trend, we continue to recommend traders stay in short positions. We initiated these at USD56.25, which was the closing level of 2 Jul. For risk-management purposes, a stop loss can be placed above the USD60.28 mark.

We continue to expect the immediate support to emerge at USD54.84, which was the high of 10 Jun. The second support is eyed at USD50, a round figure. On the other hand, the immediate resistance is set at USD60.28, which was the high of 1 Jul. This is followed by USD63.81, or the high of 20 May.

Source: RHB Securities Research - 8 Jul 2019