Maintain short positions. The WTI Crude continued to experience a wild trading range for the second consecutive session yesterday. The low and high were posted at USD46.47 and USD48.66, before closing at USD47.18, indicating a gain of USD0.43. However, given that the commodity was still unable to settle above the USD47.56 immediate resistance mark, this means there was no clear signal for a stronger rebound to take place. The latest two sessions’ positive price actions came after the RSI reached an oversold reading. Maintain our negative trading bias.

Pending further positive price actions, 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 USD47.56.

We revised the immediate support to USD46.40, followed by USD45.50 – both are derived from 2 Mar’s candle. Meanwhile, resistance points are pegged at USD47.56 – the high of 2 Mar, followed by USD48.78, the price point of 27 Feb.

Source: RHB Securities Research - 4 Mar 2020