Bears still in charge; maintain short positions. The WTI Crude ended the latest trade on soft ground. At the closing, it slid USD0.45 to close at USD53.62. Trading range was between USD53.05 and USD54.84. The negative closing placed the commodity slightly below the previous immediate support of USD54. The retracement leg that started from the high of USD63.38 is still not showing signs of ending, and this has been further enhanced by the recent downside breach of the 200-day SMA line. Its RSI reading also suggests the retracement has yet to reach an oversold situation. Maintain our negative trading bias.

On the observation that the bears are still pushing ahead, 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 now be placed at the breakeven level.

Immediate support is revised to USD52.84, which was the low of 3 Sep. This is followed by USD50, a round figure. Moving up, immediate resistance is pegged at USD59.54, the high of 19 Sep. This is followed by USD63.38, the high of 16 Sep.

Source: RHB Securities Research - 2 Oct 2019