Maintain short positions. The WTI Crude’s bullish momentum was wiped off yesterday, as it plunged USD3.80 to settle at USD57.76. The commodity gapped down lower to start the session at USD61.28. After touching the session high of USD61.35, it fell to the USD57.25 session low and last traded at USD57.76. After breaching the USD60.00 physcological level, the WTI Crude settled below the 50-day SMA line – showing an early sign of a forming downtrend. As the RSI has fallen into oversold territory, we expect a quick technical rebound to happen in the coming session. If this happens, it may retest the resistance at USD59.00 and USD60.00. Since the commodity is still in correction mode, with no signs of a reversal yet, we maintain our negative trading bias.

We recommend traders stick to short positions – this was initiated at USD60.06, or the closing level of 18 Mar. To manage risks, the stop loss is adjusted to USD61.50.

The immediate support level is revised to 12 Feb’s low of USD57.41 and followed by 5 Feb’s USD56.43 low. On the upside, the immediate resistance is pegged at the USD59.00 whole number and followed by the USD60.00 physcological level.

Source: RHB Securities Research - 24 Mar 2021