RHB Research maintains ‘SHORT’ positions on the WTI Crude based on their technical analysis.
The WTI Crude attempted to bounce higher yesterday but failed as it retreated USD1.40 to settle at USD95.04 – breaching below the USD96.00 support level. The commodity opened lower at USD95.23 but then climbed higher towards hitting the USD99.22 day-high during the late Asian trading session.
Selling pressure then emerged to drag the WTI Crude, which then whipsawed in a negative direction until the end of the session. It hit the day’s bottom of USD94.07 before rebounding mildly at the close – slightly below the opening level. The latest candlestick with long upper shadow closed below the USD96.00 mark, signaling that selling pressure was getting more obvious – dragging the black gold further below the USD96.00 level.
The research house expects the WTI Crude to drag further towards the immediate support at USD89.03 in the coming sessions. Supported by the weakening of the RSI strength at the 45% mark, they reiterate on taking a negative trading bias.
Traders are recommended to maintain the short positions initiated at USD106.02, i.e. the closing level of 10 March. To manage the trading risks, the initial stop-loss threshold is set at USD114.88 or 10 Mar’s high.
The immediate support level is revised to USD89.03 (18 February’s low) – and followed by USD81.90 (24 January’s low). The nearest resistance is placed at USD96.00 and followed by USD103.63 or 9 March’s low.