Keep short positions. The WTI Crude inched higher yesterday, albeit mildly, amid intraday profit-taking activity, to close USD0.66 higher at USD81.93 – still below the immediate resistance level. It opened at USD81.13 and touched the USD81.05 low before moving up to the USD82.67 high, ahead of the US trading session. Strong profittaking was seen before it bounced off mildly towards the close. The latest session’s bullish candlestick with long upper shadow, amid the “lower high” bearish pattern, suggests that this positive momentum – with intraday profit-taking – will be short lived, as selling pressure may take the lead. This is also in line with the RSI strength, which remains below the negative trendline. We keep to our negative trading bias until the stop-loss level is breached.

We recommend traders maintain the short positions initiated at USD82.66, or the closing level of 27 Oct. To manage trading risks, the stop-loss threshold is pegged at USD83.50.

The support levels are fixed at the USD80.00 round figure, and USD78.25, which was 4 Nov’s low. The nearest resistance levels are set at USD83.08, followed by USD85.41 – 25 Oct’s high.

Source: RHB Securities Research - 9 Nov 2021