Bears are trying to crack the immediate support; maintain short positions. The WTI Crude came in near to test the immediate support of USD54.84 in the latest trade – intraday low was posted at USD54.99. This was before it rebounded to close USD0.33 higher at USD55.63. Despite the rebound from the said immediate support, no price reversal signals were flashed out. Additionally, the black gold is still capped by the 200-day SMA line. Hence, we keep to our negative trading bias.

As the negative bias is still not showing signs of reaching an end, we continue to recommend traders to stay in short positions. We initiated these at USD55.30, which was the closing level of 19 Jul. For risk-management purposes, a stop-loss can be placed above the USD60.94 mark.

We maintain the immediate support at USD54.84, which was the high of 10 Jun. This is followed by USD50. Moving up, the immediate resistance is now pegged at USD60.94, which was the high of 1 Jul. This is followed by USD63.81, or the high of 20 May.

Source: RHB Securities Research - 22 Jul 2019