On Tuesday (January 7), US crude oil fell slightly in the Asian session, trading around $73.43 per barrel. Oil prices fell back in volatile trading on Monday. Data from the U.S. Census Bureau showed that in the United States, the world's largest economy, new orders for manufactured goods fell in November due to weak demand for commercial aircraft, while corporate equipment spending appeared to slow in the fourth quarter. In Germany, Europe's largest economy, annual inflation exceeded expectations in December due to rising food prices and smaller energy price declines than in previous months. Lower demand in the United States and Germany put pressure on oil prices.

At the same time, after OPEC+ postponed its production increase plan, Saudi Arabia raised the price of oil to Asian buyers in February, boosting oil prices, while the Fed's expectations of rate cuts have not changed, so the short-term support for oil prices is limited. This week will usher in the first non-agricultural data in the United States in 2025. Pay attention to changes in expectations for the Fed's rate cuts, whether it will drive bullish sentiment in oil prices.

Crude oil continued to break upward last week, gradually rising around $70.07, and the highest point reached $74.319 and fell back after encountering resistance. The weekly level includes a big positive line, the high price broke the previous high, and the low price did not break the previous low, showing a trend of breaking out, and the market outlook is optimistic about the continuation of the bull market.

From the four-hour level, the Bollinger band of oil prices opened and diverged upward, and the moving average system golden cross diverged upward. After the oil price stabilized around $68.3, the oil price rose in an accelerated stage. The upper extension line should be around $75.3, and the short-term support level below is around $72.8. After an unexpected break, there will be signs of weakening. The long-short watershed below is around $71.8. After an unexpected break, the gold price will break the three-wave strength and return to the four-wave adjustment. On the whole, the operation strategy for crude oil today is mainly to buy on pullbacks and sell on lows, supplemented by rebounds and sell on highs. In the short term, pay attention to the resistance of 74.5-75.0 on the upper side and the support of 72.3-71.8 on the lower side.

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.