On Wednesday (December 17th) in early Asian trading, US crude oil was trading around $55.67 per barrel. US crude oil was trading around $55.15 per barrel. Oil prices fell more than 2.6% on Tuesday, closing at their lowest level in nearly five years. Continued concerns about oversupply and expectations that the prospect of peace between Russia and Ukraine might ease sanctions on Russia exacerbated market pressure.

Although Ukraine continues to launch attacks on some Russian refining facilities and related assets, and the safety of shipping in the Black Sea has not been completely eliminated, while the US has also taken enforcement actions against tankers from individual oil-producing countries, market price movements clearly show that whenever there are positive signals in the peace talks, oil prices face significant downward pressure.

From a daily chart perspective, and from a local perspective, crude oil is currently in a minor consolidation phase, with the candlestick closing lower for four consecutive trading days. It has broken below the strong mid-term support level of 56. The moving average system is in a bearish alignment, and the objective mid-term trend is downward. The current objective trend for crude oil is consistently downward. With strong support broken, the medium-term trend has entered a downward phase.

Crude oil's short-term (1-hour) trend continues its downward movement, with the moving average system in a bearish alignment, indicating a downward objective trend in the short term. The MACD indicator is trading below the zero line, showing strong bearish momentum. In the early morning, oil prices are consolidating around the low of 55, with the main and secondary trends alternating. It is expected that crude oil will continue to decline and make new lows throughout the day. Today's strategy: Short at 55.70, stop loss at 56.40, target 54.00.

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.