RHB Investment Bank Bhd (RHB Research) is advising traders to maintain short positions on WTI Crude despite a slight rebound that saw the commodity closing at US$68.43.
On Wednesday, WTI Crude opened at US$67.98, dipped to a low of US$66.94, and later regained ground, forming a bullish candlestick with a "long lower shadow."
However, the commodity remains below both the 50-day and 200-day Simple Moving Average (SMA) lines, a sign that bearish pressure persists.
The 50-day SMA line continues its downward trend, signalling potential for further declines. RHB anticipates that WTI Crude could retreat to the next support level of US$64 if the downward momentum continues. If recent bullish action gains traction, the commodity could test resistance at US$72, with the next significant barrier at US$76.
However, RHB Research's technical outlook remains cautious, and they retain a negative trading bias.
The research house recommends that traders keep their short positions initiated on Oct 15 at US$70.58, with a stop-loss set at US$76 to manage risks. The immediate support levels are identified at US$64 and US$60, while resistance stands at US$72, followed by US$76.
