RHB Investment Bank Bhd (RHB Research) maintained its short trading bias on WTI Crude, as the commodity continues its downward trend, falling by US$1.10 to close at US$67.20. Opening at US$68.44, the black gold gradually weakened throughout the session, reaching a low of US$66.98 before settling at the day's close.
The formation of a new "lower low" bearish candlestick indicates strengthening bearish momentum. Additionally, the Relative Strength Index (RSI) has turned lower, suggesting the potential for further downside movements in the near term. With the price remaining below the 50-day Simple Moving Average (SMA) line and the medium-term trend pointing downward, technical indicators favour the bears.
RHB Research anticipates that if this momentum persists, WTI Crude could test its immediate support level at US$64, with a further drop potentially reaching US$60. Resistance levels are positioned at US$72 and US$76.
Traders are advised to maintain the short positions initiated on Oct 15 at US$70.58, with a stop-loss threshold set at US$76 to manage risks. The commodity's bearish outlook reflects ongoing challenges in market sentiment and technical conditions.
