RHB Retail Research

WTI Crude: Attempting to Move Past the Immediate Resistance

Publish date: Tue, 07 Dec 2021, 08:29 AM
0 9,020
RHB Retail Research

Maintain short positions. The WTI Crude rebounded strongly yesterday, climbing USD3.23 higher to close at USD69.49 – crossing above the 200-day average line while attempting to breach its immediate resistance or trailingstop level at the close. It opened positively at USD67.02 and touched the day’s low of USD66.72 only to move northwards gradually to hit the day’s high of USD70.15 during the late hours of the US trading session before the close. The latest white body candlestick– which crossed above the 200-day SMA line – indicates that buying pressure has re-emerged to reverse the WTI Crude’s direction northwards in the coming sessions. We expect the commodity to rebound stronger towards the USD72.93 resistance in the coming sessions. Since it did not close above the trailing-stop of USD69.49 yesterday, we will stick to our bearish trading bias until it is breached.

Traders should stay in the short positions initiated at USD78.36, or the closing level of 17 Nov. To manage trading risks, the initial trailing-stop threshold is pegged at the USD69.49 resistance.

The immediate support is fixed at USD67.40 – 26 Nov’s low – followed by USD64.43, which was 30 Nov’s low. The nearest resistance is set at USD69.49 – 1 Dec’s high – followed by USD72.93, or 29 Nov’s high.

Source: RHB Securities Research - 7 Dec 2021

Be the first to like this. Showing 0 of 0 comments

Post a Comment