Hovering around the 200-day SMA line; maintain short positions. The WTI Crude managed to recoup most of its earlier session’s losses to settle marginally lower by USD0.08 at USD56.41. The low was recorded at USD55.41. The commodity has been hovering around the 200-day SMA line over the past two sessions, this came after it experienced a steep decline from the USD63.38 resistance level. A firm downside breach from this SMA line would enhance the overall negative tone. Maintain our negative trading bias.

In the absence of a price reversal signal from the 200-day SMA line, traders are advised to stay in short positions. We initiated these at USD56.49, the closing level of 25 Sep. For risk-management purposes, a stop loss can be placed above USD59.54.

Immediate support is expected to emerge at USD54, the low of 12 Sep. This is followed by USD50, a round figure. Meanwhile, immediate resistance is now expected at USD59.54, the high of 19 Sep. This is followed by USD63.38, the high of 16 Sep.

Source: RHB Securities Research - 27 Sept 2019