During the Asian session on Friday (September 22), WTI crude oil fluctuated in a narrow range and is currently trading around 89.6 dollars per barrel. US crude oil rebounded from the lowest 88.1 yesterday and rose as high as 90.7 overnight. The sharp rise of $2.60 may once again catch many investors by surprise. The high oscillation this week is exactly the stage we have repeatedly been reminded of in the current market, that is, the stage of wash trading at high levels. Previously, we have been suggesting not chasing up and constantly going short at high. We also highlighted on Wednesday and Thursday, to buy low and sell high in the range of 88.5-90.5, which achieved good results as well. With the Fed's over-hawkish rhetoric, risk assets fell across the board, and market risk appetite cooled rapidly. Commodities were no exception, and oil prices also showed three consecutive pullbacks from high levels. In addition, Russia announced yesterday evening that it would begin temporary restrictions on diesel and gasoline exports on September 21 to stabilize the domestic market, which added to the already tight oil market. For the future oil market, it is necessary to grasp the certainty in the uncertainty, that is, the tightening of supply is obvious, and once the demand is activated, it will be another round of upward movement. The current oil price is only a correction, not a reversal, and investors need to grasp the rhythm of trading.

News: The government press office said in a statement on its Telegram channel that the Russian government has temporarily restricted diesel and gasoline exports in order to stabilize the domestic market. The actual ban on gasoline and diesel exports came into effect on September 21. Temporary restrictions will help saturate the fuel market, which in turn will lower consumer prices.

Data: Initial jobless claims fell by 20,000 from the previous week to 201,000 in the week ended September 16, down from 225,000 forecasted by economists polled by Reuters. And it's also the lowest level since January.

Investors need to focus on the preliminary US Markit manufacturing PMI for September.

Trading at the daily timeframe, Oil prices did not continue to weaken after falling back to 88.1 yesterday but rebounded on the back of the news. Crude oil showed a weak pattern on Tuesday, but a larger rebound occurred yesterday. At present, crude oil may not be so weak, but it cannot show a one-way move. In the short term, oil prices still have to fluctuate at high and maintain the wash trade. However, the indicator has been showing overbought signals, which will need a sharp correction to effectively lift it. It can only be said that the time has not yet come. As for whether the oil price will rebound or pull back later, it still needs to see the development of fundamentals in the later period.

It is recommended that investors mainly buy low and sell high. If the oil price surges to 91.0, you can go short with small positions. The stop loss is set at 91.5, and the first target to take profit is 88.5, and the second is 87.2. If the oil price retraces to 88.5, you can go long with small positions, The stop loss is set at 88.0, and the first target to take profit is 90, and the second is 91.

Trading Direction: Long

Entry Price: 88.400

Target Price: 91.000

Stop Loss: 88.000

Support: 88.100/87.200

Resistance: 90.800/92.200