RHB Investment Bank Bhd (RHB Research) has advised traders to maintain their short positions on WTI Crude as the commodity posted a strong rebound last Friday, gaining US$0.98 to close at US$70.60. The research house noted that while the long bullish candlestick signals recovering momentum, the broader technical outlook remains negative.

The rebound was supported by buying interest after the WTI Crude opened at US$69.68 and traded between an intraday high of US$70.75 and a low of US$69.44. However, the 200-day simple moving average (SMA) line continues to position itself above the current price, reinforcing the bearish sentiment in the long-term trend.

RHB Research noted that a decisive breakout above the US$72 resistance level could alter the bearish technical structure. Until such a move is observed, the recommendation remains to hold short positions, initially set at US$70.58 on Oct 15. The stop-loss level is advised at US$72 to manage trading risks effectively.

Support for WTI Crude is seen at US$68, with a further downside at US$64. On the other hand, resistance remains at US$72, with an additional ceiling at US$76 if upward momentum persists. Despite the technical rebound, RHB Research suggests cautious positioning given the overall bearish environment.