Maintain short positions, as no reversal signal in sight. The WTI Crude extended its downward move in the latest trade, giving up USD6.58 to close at USD20.37 – at one point it reached a low of USD20.06, i.e near the immediate support of USD20. Despite the RSI reading continuing to show an oversold situation, the bears are still showing a firm control over the multi-week negative price trend that that started from the high of USD65.65 on 8 Jan. Hence, we are keeping our negative trading bias.

Without 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 USD27 level.

The immediate support is revised to USD20 – this is followed by USD18. Moving up, the immediate resistance is now pegged at USD23, followed by USD27 – both are derived from the latest candle.

Source: RHB Securities Research - 19 Mar 2020