200-Day SMA line remains elusive for the bulls; maintain short positions. The WTI Crude failed to sustain its earlier session’s positive performance, which at one point saw it testing the 200-day SMA line. Session’s high and low were recorded at USD57.64 and USD55.33, before it ended USD0.89 lower at USD55.88. The intraday price reversal from the said SMA line is suggesting the commodity’s retracement leg – that started from the high of USD60.94 on 1 Jul – is still in place. Hence, we keep to our negative trading bias.

As the bears are still showing good control over the price trend, we continue to recommend traders 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.

Immediate support is pegged at USD54.84, which was the high of 10 Jun. This is followed by USD50. On the other hand, the immediate resistance is expected 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 - 25 Jul 2019