RHB Investment Bank Bhd (RHB Research) has advised traders to maintain their short positions on West Texas Intermediate (WTI) crude oil despite a recent price rebound above the 50-day simple moving average (SMA). On Friday, WTI crude rose by US$1.59, closing at US$71.78, having started the day at US$70.33 and reaching an intraday high of US$71.92.

RHB Research noted that although the bullish momentum is building, indicated by the relative strength index (RSI) entering positive territory, the overall bearish structure remains valid as the commodity continues to trade below the critical US$76 resistance level. The rebound also has not yet filled the gap caused by the drop on 15 October, indicating that bears still hold a technical advantage.

Despite the recent upward movement, RHB Research maintains a negative trading bias, advising traders to hold onto the short positions initiated at US$70.58 on 15 October. The bank sets a stop-loss threshold at US$76, with the first support pegged at US$68 and the second at US$64. The nearest resistance is positioned at US$76, with the next resistance at US$80.