RHB Investment Bank (RHB IB) provides insights into price movement of Crude Oil Futures Price Today (WTI Crude), which exhibited a robust rebound on Friday (Jan 5), gaining USD1.62 to close at USD73.81 – still below the 50-day and 200-day Simple Moving Average (SMA) lines.
This signifies that the short-term rebound is within the context of a significant downtrend.
The commodity commenced positively at USD72.40 and experienced a strong climb towards the end, reaching a high of USD74.24 before a mild retreat at the close.
The renewed bullish momentum, particularly after Thursday’s volatile session, suggests the commodity is positioned for a short-term rebound with a potential ceiling at the USD76.76 immediate resistance – near the SMA lines.
It is crucial to note that the recent occurrence of the “Death Crossover” bearish pattern (the 50-day SMA line crossing below the 200-day SMA line) forms the basis for our medium-term outlook, which remains bearish.
RHB IB said unless the immediate resistance is breached, the research house’s trading bias remains negative.
It suggested that traders traders maintain the short positions initiated at USD71.77, the closing level of 28 Dec 2023.
To manage the trading risks, the initial stop-loss threshold is set at the USD76.76 immediate resistance.
