Still a minor rebound; maintain short positions. The WTI Crude continued to fail to signal a stronger rebound is taking place in the latest trade as it shed USD0.63 to settle at USD50.32. The high was posted at USD51.48. The black gold has been staging a minor rebound over the recent sessions after its sharp retracement that started from the high of USD65.65 on 8 Jan reached an extremely oversold RSI reading recently. However, at this juncture, provided the commodity is still not able to crack above the resistance mark of USD52.29, the prospect for a stronger rebound is still capped. Maintain our negative trading bias.

As the said rebound is still considered minor, 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 USD52.29 level.

The immediate support is set at USD50.24, the low of 6 Feb, followed by USD49.31, the low of 5 Feb’s “Bullish Engulfing” pattern. Conversely, the immediate resistance is now pegged at USD51.50, derived from the latest candle. This is followed by USD52.29, derived from 1 Feb’s candle.

Source: RHB Securities Research - 10 Feb 2020