[Bitop Market Review] Crude Oil Strategy Analysis

2024年02月07日 09:41:34

Tensions Ease in the Israeli-Palestinian Conflict, Oil Prices Rebound!


During the Asian trading session on Wednesday, February 7th, the price of US crude oil is trading around $73.40 per barrel. Overnight, the EIA released its Short-Term Energy Outlook for February. The outlook revised down US crude oil production for 2024 while slightly raising expectations for global crude oil demand for this and next year, pushing oil prices to refresh intraday highs.


Additionally, Hamas issued a statement last night, expressing a positive attitude towards handling the prisoner exchange agreement and insisting on demanding a comprehensive ceasefire from Israel. The easing of tensions in the Israeli-Palestinian conflict led to a rapid short-term decline in oil prices. The market has been repeatedly fluctuating around this event, becoming the focus of the market in the short term. Ultimately, oil prices closed slightly higher yesterday, continuing the pattern of oscillating rebounds.


This week, the market will continue to focus on whether the support around $71.0-$70.0 per barrel can continue to stabilize, which will determine the range of fluctuations for the week. Looking at the 4-hour chart, oil prices have experienced a wave-like retracement, first breaking higher and then falling back below the highs, near the downward trajectory. Currently, the market presents a wide-ranging pattern of fluctuations, continuously testing the strength of support between the upper and lower bounds.


In the short term, oil prices are likely to see a retreat first, but it is important to watch for potential breakouts, which will determine the extent of the move. The probability of a breakout at the beginning of the week is relatively low, so it is advisable to continue with the strategy of range-bound oscillations. In terms of trading, it is recommended to wait until after the European market opens to first determine the intraday range and then decide on entry points. Overall, in the short term, attention should be paid to resistance around $75.0-$76.0 per barrel and support around $72.0-$71.0 per barrel.


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.