Maintain short positions as the trend is still bearish. The WTI Crude advanced USD0.74 to close at USD21.22. Based on the daily chart, the positive session did not flash out a price reversal signal – despite the still oversold RSI reading. Instead, its rebound over the latest two sessions can be seen as just a minor pause by the bears – after the USD19.46 support level was recently tested. Additionally, the bearish bias is also supported by both the 100-day and 200-day SMA lines, which continued to slide lower. Maintain our negative trading bias.

As we have yet to see a trend reversal signal, 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 maintained at USD19.46, or the low of 20 Mar. This is followed by the USD18.00 round figure. Towards the upside, the immediate resistance is expected at USD22.00, ie the price point of 27 Mar. This is followed by the USD24.00 level.

Source: RHB Securities Research - 2 Apr 2020