Maintain short positions, as price signals remain negative. The WTI Crude ended the latest session USD1.75 weaker at USD26.95. The low and high were recorded at USD26.63 and USD30.30. The closing level also placed the commodity below the previous USD27.34 immediate support. While the RSI continues to flash out an oversold reading, the price actions over the recent sessions still indicate that the negative momentum remains firmly in place. Premised on this, we are sticking with our negative trading bias.

In the absence of a price reversal signal, we are keeping with our recommendation for traders to stay in short positions. We initiated these at USD31.50, or the closing level of 12 Mar. To manage the risk, a stop-loss can be placed at the breakeven mark.

The immediate support is revised to USD26.05, ie the low of 11 Feb 2016. This is followed by the USD25,00 level. Moving up, the immediate resistance is now pegged at USD28.50 – derived from the latest candle. This is followed by USD30.50 – near the latest high.

Source: RHB Securities Research - 18 Mar 2020