Bears are in a good control, maintain short positions. The WTI Crude continued to fail in signalling a positive price reversal. It was unsuccessful in holding on to its earlier session’s positive footing, which saw it reaching a high of USD24.74 before heading lower to close at USD22.42 – indicating a USD0.35 decline. The weak session suggests the commodity’s retracement phase – which resumed after it completed a 1-week counter-trend rebound on 3 Apr with a high of USD29.13 – remains firmly in place. For now, this weak bias should stay, provided the prices are capped by the USD24.74 immediate resistance. Premised on this, we are keeping our negative trading bias.

On the observation that the bulls still lack the strength to reverse the trend, we continue to suggest traders stay in short positions. These were initiated at USD23.63, or the closing level of 7 Apr. To manage the risk, a stop-loss can be placed at above the USD24.74 mark.

We keep the immediate support level at USD21.70, followed by the USD19.00 mark. Moving up, the immediate resistance is now pegged at USD24.74 – the latest high – and followed by USD26.50, ie the price point of 9 Apr.

Source: RHB Securities Research - 14 Apr 2020