The WTI Crude oil price extended its decline on Tuesday, losing US$0.63 to settle at US$70.08. According to RHB Investment Bank Bhd (RHB Research), the commodity opened lower at US$70.61 and dropped to an intraday low of US$69.18 before recovering slightly to close above the 50-day SMA line.
The formation of a second consecutive bearish candlestick indicates re-accelerating bearish momentum, supported by the downward-trending RSI. This signals potential continuation of negative price actions in the upcoming sessions.
Should WTI Crude breach the 50-day SMA line, it is expected to attract fresh selling pressure, with prices potentially retracing to the immediate support at US$68 and subsequently to US$64.
RHB Research maintains its negative trading bias, advising traders to retain short positions initiated on Oct 15 at the close of US$70.58. To manage trading risks, the stop-loss is set at US$72.
Key Levels to Watch:
Support: Immediate support at US$68, followed by the lower support at US$64.
Resistance: Overhead resistance at US$72, with a secondary level at US$76.
RHB Research remains cautious, anticipating further downside pressure for WTI Crude.
