The time when Ron 97 increased by RM0.10 per litre, the oil price was at its high which was at USD92.43. As usual, when there is a new high, traders will look for short opportunity. Meaning that we will exit our buy or long to take profit from buying oil.
After a new high created last year, then our Ron97 increased by RM0.10 makes the new price per litre become RM2.40. Now, it is in downtrend channel. Unless the price break the downtrend channel as you can see on the chart below. Even at 4 hour timeframe, oild price did not yet hit its oversold level (which normally at 20 of RSI)… why the price increased at that time?