Maintain short positions as the bears are still capping the prices. The WTI Crude settled the latest session slightly higher by USD0.14 at USD56.10. For the intraday, the low and high were posed at USD55.35 and USD56.80. Despite the two consecutive positive sessions, based on the daily chart, there are still no clear signs that the commodity’s negative price bias – which set in after a price rejection from the 200-day SMA line – has reached an end. Instead, the positive sessions can be seen as just a minor pause by the bears. As such, we keep to our negative trading bias.

As the bears still have control over the price trend, we continue to recommend traders stay in short positions – we initiated these at USD55.17, the closing level of 29 Nov. For-risk management purposes, a stop loss can be placed at above USD58.74.

We are keeping the immediate support at USD54.76, which was the low of 20 Nov’s “Bullish Engulfing” formation. This is followed by USD52.39, or the low of 12 Oct. Moving up, the immediate resistance is now expected at USD58.74, which was the high of 22 Nov. This is followed by USD63.38 – the high of 16 Sep.

Source: RHB Securities Research - 4 Dec 2019