Maintain short positions. The WTI Crude inched higher on Thursday, adding USD0.11 from Wednesday’s session to settle at USD48.23. The commodity initially had a weak opening, falling USD0.03 to open at USD48.09. It bounced between the day high and low of USD48.62 and USD47.56 before closing at USD48.23. Although the WTI Crude saw rebounds during Wednesday and Thursday’s sessions, the RSI indicator did not follow through to trend higher. We are seeing a slight negative divergence between the commodity price and RSI indicator. The divergence may cap the upside potential of the WTI Crude and see more downside risks. The uptrend is deemed resumed if the resistance marked at USD49.28 is taken out. As such, we maintain our negative trading bias.

We recommend traders maintain short positions. Our short positions were initiated at USD47.02, or the closing level of 22 Dec. To manage risks, a stop loss can be placed above the USD49.28 threshold.

The immediate support is revised to USD46.16 and followed by USD45.69, or the low of 14 Dec. On the upside, the immediate resistance is revised to USD48.54 and followed by USD49.28 – the high of 18 Dec

Source: RHB Securities Research - 28 Dec 2020