Maintain short positions, as the negative trend is not showing signs of reversing. The WTI Crude failed to hold on to its intraday positive gains and settled USD0.15 lower at USD53.33. This was after it reached a high of USD54.37. Despite showing signs of attempting a rebound over the latest two sessions, the commodity’s overall weak trend is still not showing signs of reaching an end – further supported by the fact that it has not been able to cross above the USD53.71 immediate resistance despite attempts over the past two sessions. Hence, we are keeping our negative trading bias.

As the oversold RSI reading is still not accompanied by a positive price reversal signal, we advise traders to stay in short positions. These were initiated at USD59.61, or the closing level of 8 Jan. To manage the risk, a stop-loss can now be placed above the USD55.95 mark.

The immediate support is set at USD52.13, or the low of 27 Jan. This is followed by USD51.38, ie the low of 10 Oct 2019. Meanwhile, the immediate resistance is now eyed at USD53.71, which was the high of 27 Jan. This is followed by USD55.95, or the high of 24 Jan.

Source: RHB Securities Research - 30 Jan 2020