[Bitop Market Review] Crude Oil Strategy Analysis
OPEC+ Continues Production Cuts, Today's Crude Oil Market Analysis!
During the Asian trading session on Monday, February 5, the current crude oil price is trading around $72.40 per barrel. Reports indicate that Hamas' senior official in Lebanon, Osama Hamdan, confirmed in a press conference that the organization has received a ceasefire proposal drafted by mediators. However, he stated that the parties have not reached a consensus, and the proposal lacks some details. The potential ceasefire in the Middle East will also impact oil prices.
Furthermore, OPEC+ maintaining its production cut policy has boosted oil prices. A Reuters survey shows that OPEC's oil production in January 2024 recorded the largest monthly decline since July, attributed to the new voluntary production cut agreement and decreasing production due to the unstable situation in Libya.
Crude oil formed a mid-negative candlestick last week, giving back all the upward momentum from the previous week. The weekly chart shows a bearish engulfing pattern, indicating a complete retracement, confirming support at the lower levels. The candlestick structure is exhibiting a back-and-forth pattern, showing a certain choppy consolidation, making it difficult to determine a clear strong or weak trend. After the weekly close lower, attention will continue to focus on whether the support around 71.0-70.0 can stabilize this week, determining the oscillation range for the week.
In the short term, a potential retracement is anticipated, but whether a break will occur will determine the extent of the space. The probability of a break in the short term is expected to be small, with the focus still on the main range-bound oscillation within the range. It is advisable to determine the intraday range after the European session and then decide on entry points. Overall, for Monday's crude oil operations, it is recommended to focus on resistance around $74.0-$75.0 and support around $71.0-$70.0 in the short term.
Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.