Maintain short positions. The WTI Crude saw the bears take a breather yesterday, rebounding USD0.65 to settle at USD79.01. The commodity opened at USD78.34 and fell to the day’s low of USD77.08. During the European trading session, selling pressure tapered, and the commodity rose to the day’s high of USD79.36 before closing at USD79.01. The session showed the black gold’s attempt to form an interim base near the 50-day SMA line. In the event that the commodity manages to stage a rebound, and regains the USD80.00 region, the previous bearish breakout would be deemed a false breakout. In the next session, the commodity is likely to consolidate sideways along the 50-day SMA line. We keep our negative trading bias until the stop-loss is triggered.

We recommend traders maintain the short positions initiated at USD78.36 or the closing level of 17 Nov. To manage trading risks, the stop-loss is revised to USD82.33 from USD83.08.

The support level is revised to USD77.00, followed by USD74.96, which was the low of 7 Oct. On the upside, the nearest resistance level remains at the USD80.00 round number, followed by USD82.33, or 11 Nov’s high.

Source: RHB Securities Research - 19 Nov 2021