Maintain short positions. The WTI Crude spiked to an intraday high of USD46.68 before it closed at the USD46.26 immediate resistance. The attempt to break out and extend the commodity’s multi-month upward move came post its near 2-week sideways trading range below the abovementioned resistance. However, as mentioned in our note last Friday, we continue to see a closing above the USD47.57 resistance point as the valid breakout from said 2- week consolidation. A failure to do so will continue to expose the WTI Crude to the risk of extending its consolidation trading phase. We maintain our negative trading bias.

We recommend traders stay in short positions. We initiated these at USD44.55, or the closing level of 1 Dec. To manage risks, a stop-loss can be placed above the USD47.57 threshold.

The immediate support is revised to USD45.30 and followed by USD44.12, ie the low of 1 Dec. On the upside, the immediate resistance is set at USD46.26, or the high of 29 Nov. This is followed by USD47.57, which was the high of 5 Mar.

Source: RHB Securities Research - 7 Dec 2020