The bulls are still unable to signal a trend reversal – maintain short positions. The WTI Crude fell during the latest session, closing USD0.88 weaker at USD45.90. This was after the commodity ranged between USD45.65 and USD47.57. The weak session continues to mean that the bulls are still not able to signal a price reversal – this was despite a sharp spike on 2 Mar. The negative bias should stay as long as it is still capped by the USD47.56 resistance point. Hence, we are keeping to our negative trading bias.

As the bulls have failed to signal a price reversal, we recommend traders stay in short positions. We initiated these at USD49.90, or the closing level of 25 Feb. To manage the risk, a stop-loss can be placed above the USD47.56 mark.

The immediate support is revised to USD45.50 – the price point of 2 Mar’s candle. This is followed by USD44.85, or the price point from 2 Mar. Moving up, the immediate resistance is pegged at USD46.40, which was derived from the latest candle. This is followed by USD47.56, ie the high of 2 Mar.

Source: RHB Securities Research - 6 Mar 2020