Maintain short positions. The WTI Crude generally moved higher during the latest session, hitting a high of USD47.74 before giving back some of the gains towards the final hours of the trading period, where it closed USD1.26 stronger at USD46.78. Despite the positive performance, we maintain the view that the commodity has yet to decisively break away from its minor congestion area. Recall that we are looking for a positive close above USD47.57 as the valid price signal – which suggests a further positive price extension. Additionally, the RSI reading has also approached the overbought threshold. 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 USD46.50 and followed by USD45.50, which was near the low of the latest session. On the upside, the immediate resistance is set at USD47.57 and followed by USD48.66, ie the high of 3 Mar.

Source: RHB Securities Research - 11 Dec 2020