Maintain short positions. The WTI Crude tested the USD45.30 immediate support with an intraday low of USD45.14 before a rebound kicked in – narrowing its losses by USD0.16 to close at USD45.60. While it managed to settle above said support, the risks remain high that the commodity is still trading in an incomplete correction phase. This is based on the recent failed attempt to close above the USD46.26 resistance point. This correction came following the WTI Crude’s prior sharp multi-week upward move. Towards the downside, the minimum retracement target is around the USD44.12 support level. 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 USD45.30 level is still the immediate support target – this is followed by USD44.12, ie the low of 1 Dec. Conversely, the immediate resistance is eyed at USD46.26, or the high of 29 Nov, and followed by USD47.57, which was the high of 5 Mar.

Source: RHB Securities Research - 9 Dec 2020