Will crude oil fall further?Oil prices fell and then rose before closing slightly lower on Friday as the new US presidential election briefly rattled markets. The president's New Deal still needs time to land, and the current pattern of crude oil is still not contradictory. The latest data for the US and Middle East show an overall destocking, with about 300,000 b/d of crude production shut down before Hurricane Rafael makes landfall. U.S. oil and gas production will be greatly improved after the election of Donald Trump, and the new president is likely to tighten sanctions on Venezuela and Iran, which will reduce global supply. From the perspective of a trade war, demand for goods could fall around the world. The current crude oil supply and demand pattern is still volatile on oil prices.
Crude oil today appeared a high break trend, the highest point in the $72.2 area encountered resistance to fall, then the lowest point hit 70.9 area hovering. Daily chart level, the medium-term trend of oil price oil price up and down through the average system, the trend is volatile rhythm, range between 72.80-65.50. Oil prices are at the lower end of the range. Last week, the overall trend was weak, and finally tested the lower edge of the range. The medium-term trend is expected to fluctuate in a wide range for a period of time. Crude oil four hours on the level, the trend of oil prices fluctuated repeatedly upward rhythm, oil prices hit around 73, fell again. Short - term objective trend shock rhythm. It is expected that the short - term trend of crude oil will still maintain the probability of repeated upward.
Based on the above analysis, I believe that: in the broad shock of crude oil, the upper resistance is more obvious, and the probability of pressure is greater in the future market. In terms of operation, the rebound is the first, and the low is the auxiliary. The above attention is paid to the resistance of 72.0-72.8 dollars, and the below attention is 69.6-69.0 dollars support.
