On Wednesday (November 27), US crude oil fell slightly in the Asian session, trading around $68.60 per barrel. As Israel and Lebanon reached a ceasefire agreement, the risk premium of oil was reduced, but OPEC+ will hold a meeting this Sunday and may consider extending production cuts, which still provides support for oil prices. At present, the fundamentals are unfavorable for bullish sentiment on oil prices, and market sentiment has returned to a volatile downward trend.

In addition, sources said on Tuesday that US President-elect Trump does not intend to exempt crude oil from the 25% import tariff he plans to impose on Canada and Mexico. This move will raise oil prices, and oil prices in the Midwest of the United States, which is most dependent on Canadian crude oil, will soar. This trading day focuses on changes in the geopolitical situation and EIA inventory data.

The crude oil market opened at $69.16/barrel yesterday, and then the market rose first, with the daily line reaching a high of $70.43/barrel. Then the market rose and fell, with the daily line reaching a low of $68.15/barrel. After the market was consolidated, the daily line finally closed at $69.07/barrel. The market closed with a long-legged cross star pattern with an upper shadow slightly longer than the lower shadow. After the end, the oil price continued to be under pressure.

From the four-hour level of crude oil, the crude oil Bollinger Bands showed signs of gradual closing, and the oil price was hovering in the middle and lower tracks. After reaching $71.5, the oil price was under pressure and pulled back. At $70.3, there was a second pressure. The short trend will continue to test the support of the lower track. If it unexpectedly breaks upward, there is a high probability of stabilization. On the whole, crude oil is under pressure amid wide fluctuations. Today, we will focus on the continuation of the short position. In terms of operation, we will consider shorting on rebound as the main measure and buying on dips as the auxiliary measure. We will focus on the resistance of $69.7-70.0 on the top and the support of $67.65 on the bottom.

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.