On Wednesday (December 17th) in early Asian trading, crude oil traded around $56.78 per barrel. Oil prices rose nearly 3% on Wednesday, mainly driven by geopolitical tensions. US President Trump ordered a "blockade" of all sanctioned oil tankers entering and leaving Venezuela, raising concerns about Venezuelan crude oil supplies and partially easing market anxieties about a global supply glut.

Furthermore, multiple sources revealed that if Russian President Putin refuses to advance the Russia-Ukraine peace agreement, the US is preparing a new round of sanctions against the Russian energy sector. These sanctions include targeting a "shadow tanker fleet" transporting Russian crude oil, as well as traders facilitating related transactions. This statement has reignited market concerns about potential supply disruptions in the short term.

From a daily chart perspective, crude oil prices have seen a technical rebound after falling to a four-and-a-half-year low, but the overall trend remains weak. Prices had previously broken below multiple medium- and long-term moving averages and are currently trading below the 20-day, 50-day, and 100-day moving averages, with the moving averages showing a bearish alignment, indicating that the medium-term downtrend has not yet reversed. The Relative Strength Index (RSI) briefly entered oversold territory before slightly rebounding to around 30, suggesting some release of short-term selling pressure, but this rebound is more of a corrective move.

Crude oil's short-term (1-hour) trend continues its downward movement, with the moving average system showing 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. Oil prices are consolidating around the low of 55 in the early morning, and are expected to continue their downward trend to new lows throughout the day. In summary, the recommended trading strategy for crude oil today is to primarily sell on rallies and secondarily buy on dips, with short-term resistance at 58.0-59.0 and short-term support at 56.0-55.0.

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.