Sliding mode still on; maintain short positions. The WTI Crude has failed to maintain most of its earlier sessions’ gains – settling the latest session at USD20.48, which indicated a USD0.39 gain. The high was recorded at USD21.89. The positive performance can be seen as just a minor pause by the bears after the recent sessions’ sharp declines. It does not suggest that the commodity has flashed out a bottom. All in, based on the daily chart, the WTI Crude’s weak trend remains firmly in place. We maintain our negative trading bias.

As the weak trend is still likely to extend, we are staying with our recommendation that traders 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 above the USD24.00 threshold.

The immediate support is set at USD19.46, or the low of 20 Mar. This is followed by the USD18.00 round figure. Meanwhile, the immediate resistance is expected at USD22.00, ie price point of 27 Mar. This is followed by the USD24.00 level.

Source: RHB Securities Research - 1 Apr 2020