Maintain short positions. The WTI Crude pared down all the intraday gains yesterday and dragged further below to close USD0.61 weaker at USD65.57. It opened higher at USD67.01 and gradually climbed higher, which saw it hit the USD69.49 day high ahead of the US trading session. Selling pressure then emerged to shift the direction southwards towards the close. It touched the intraday low of USD64.84 before the close. The latest black body candlestick with long upper shadow – which failed to sustain above the 200-day average line – is showing that selling pressure is getting more obvious below the 200-day average line. We expect the negative momentum to persist towards breaching the USD64.43 support in the immediate term. With that, we stick to our bearish trading bias.

Traders should keep to the short positions initiated at USD78.36 or the closing level of 17 Nov. To mitigate the trading risks, the stop-loss threshold is set at the USD75.00 threshold.

The immediate support is fixed at USD64.43 – 30 Nov’s low – and followed by USD61.50, which was 23 Aug’s low. The nearest resistance is still eyed at USD67.40 – 26 Nov’s low – and followed by USD75.00.

Source: RHB Securities Research - 2 Dec 2021