Maintain short positions, as a minor counter-trend rebound is developing. The WTI Crude continued to extend its minor rebound – this was after it recently came near to testing the USD50 immediate support mark. The session’s low and high were posted at USD53.54 and USD55.18 before closing at USD54.93 – this indicated a USD0.43 gain. Still, we continue to see the weak bias that started from the high of USD60.94 on 1 Jul as still intact. Additionally, the commodity is still capped by the 200-day SMA line – indicating a weak trend. As such, we keep to our negative trading bias

Until there are signs that this rebound will extend much further to negate the negative trend, we continue to recommend that 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 now be placed at the breakeven level.

The immediate support is set at USD50, a round figure. This is followed by USD45. On the other hand, the immediate resistance is pegged at USD58.82, which was the high of 31 Jul. This is followed by the USD60.94 mark, or the high of 1 Jul.

Source: RHB Securities Research - 13 Aug 2019