The support is not broken:upYesterday's long positions in crude oil yielded good profits, and after taking profits, crude oil experienced a temporary decline. Currently, the medium to long-term strategy for crude oil is still biased towards long positions. The chart shows two support levels and two possible trends. Aggressive traders can go long now, but they should be mindful of their position sizes. Conservative traders can watch and wait for the next move.
From a technical analysis perspective, crude oil rose then fell yesterday, with the highest rebound reaching the 78.0 resistance level and then declining below the 4-hour midline. It fell again at the end of the day, and closed at a low point. The daily chart closed with a bearish K-line, forming a continuous downward trend. From the daily K-line structure, the continuous decline suggests a further decline. However, overall, it is still oscillating within a wide range of 72.0-82.0, and may return to the lower range, but breaking through will be difficult. It may also end up oscillating after a downward probe. The 4-hour chart continues to decline below the midline, and the step-by-step downward trend continues. Yesterday's high point of 78.0 is the critical point for short-term bears and also the short-term defense point for the midline Bollinger band. Below this point, traders can consider short positions. The overall break of the hourly chart support level of 76.0 has turned into short-term resistance. Taking into account yesterday's rebound and subsequent decline, today's trading may repeat this type of oscillating downward trend, with only the strength of the rebound determining the entry point for short positions.
In summary, for short-term trading in crude oil today, it is recommended to focus on the resistance level of 78.0-79.0 and the support level of 74.0-73.0.
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