Bearish move is extending; maintain short positions. The WTI Crude extended its retracement in the latest session, giving up USD1.64 to close at USD47.09. Trading ranged between USD45.88 and USD48.78. The commodity has been on a steep decline over the past week – its RSI is now flashing out an oversold reading again. However, the latest weak performance suggests the bearish bias is still firmly in place. Hence, we are keeping our negative trading bias.

As the bears are still in firm control over the price trend, we recommend traders to stay in short positions. We initiated these at USD49.90, the closing level of 25 Feb. To manage the risk, a stop-loss can be placed above USD49.60.

We revised the immediate support at USD47, the high of 26 Dec 2018, followed by USD45.88, the latest low. Moving up, the immediate resistance is now set at USD48.50, the price point from the latest candle. This is followed by USD49.60, derived from 27 Feb’s candle.

Source: RHB Securities Research - 28 Feb 2020