On Monday (December 30), US crude oil rose slightly in the Asian session, trading around $70.68 per barrel. Fundamentally, data released by the US Energy Information Administration (EIA) on Friday showed that US crude oil inventories fell by 4.2 million barrels in the week ending December 20, due to increased refining activities at refineries and the holiday season also boosted fuel demand.

Although the market is relatively light during the year-end holiday, the rebound in oil prices is still significant, especially driven by the unexpected decline in US inventories and China's economic stimulus measures. At the same time, the continued tension in the situation between Russia and Ukraine has once again become the focus of market attention, driving concerns about future supply risks. However, due to the seasonal factors of the year-end holiday, market volatility may still be reduced.

From the perspective of crude oil market, the medium-term trend shows a double bottom reversal pattern. The second drop in oil prices has been 2 months in the time period. Oil prices have repeatedly touched the previous low and rebounded and then fell, and the strength is obviously weaker than the previous upward momentum. From the four-hour level, the Bollinger Bands of oil prices are in a wide range of fluctuations, and oil prices are hovering at a medium-to-high level. Oil prices have formed multiple hovering tests in the 68.4 area. At present, oil prices are stabilizing and testing upward. There are signs of secondary resistance in the 70.9 area above. After further breakthrough, oil prices are expected to open up upward space.

Overall, the operation strategy for crude oil today is recommended to focus on low-level longs and rebound high-level shorts. Pay attention to the resistance line of 71.5-72.0 on the upper side in the short term, and pay attention to the support line of 69.3-68.8 on the lower side 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.