Keep short positions. After falling below the USD65.00 level last Thursday, the WTI Crude continued to ride the negative momentum by falling further on Friday. It fell USD1.36 to settle at USD62.14. It began slightly positive at USD63.65, but whipsawed in a sideways direction until the mid-Asian trading hours – hitting the USD64.04 day high. The black gold then fell sharply towards the end of the trading session to tap the day low of USD61.82. The latest black body candlestick below USD65.00 signifies its “lower low” pattern. This is in line with our recent expectation that it is heading towards its USD61.56 immediate support level before falling further near the 200-day SMA line. Together with the weakening RSI printing below the 30% level, we retain our bearish trading bias.

We recommended traders stick to the short positions initiated at USD70.50, ie 3 Aug’s closing level. To mitigate the risks, the trailing-stop threshold is set at USD67.23, ie 18 Aug’s high.

The next two support levels are unchanged at USD61.56 – 21 May’s low – and the USD60.00 round number. The immediate resistance level is marked at USD65.01, or 20 Jul’s low, and followed by USD67.23, ie 18 Aug’s high.

Source: RHB Securities Research - 23 Aug 2021