The bullish advantage is weakening; be wary of a pullback.

Commodity

Summary:

With a significant increase in US crude oil inventories, there is a substantial risk of a short-term correction in oil prices.

SELL WTI

Close Time

CLOSED

80.737

Entry Price

79.000

83.200

88.533 -1.790 -1.98%

246.3

Pips

Loss

79.000

83.200

Exit Price

80.737

Entry Price

83.200

Fundamentals

Recently, the international crude oil market has remained highly volatile due to the fluctuating situation in the Middle East. In particular, market concerns about the significant differences between the US and Iran over the ceasefire agreement and control of the Strait of Hormuz have kept the risk of energy supply shortages at bay, providing continued support for oil prices.

However, the increase of 17.422 million barrels in US crude oil inventories will have a short-term impact on oil prices. In addition, the rise in oil prices will also affect the direction of negotiations on the Middle East situation. Excessive inflation concerns will not only suppress consumer demand, but may also affect Trump's political support, thus forcing him to consider making some concessions in the Middle East negotiations to ease the situation. Oil price bulls may be suppressed again.

Technical aspects

Bullish momentum weakens; be wary of a pullback_1

Looking at the 1-hour chart, XTIUSD has recently seen a strong rebound, but the current price is encountering significant resistance in the 82-83 area. The bullish momentum has clearly weakened, and the highs are continuously declining. Once it breaks below the triangle pattern, it may enter a deeper correction in the short term.

The trading strategy is mainly based on range-bound trading. You can try shorting near 81.5, with a target near 78.7 and a stop loss above 83.0.

Trading advice

Trading direction: Short

Entry position: 81.5

Target price: 79.0

Stop-loss level: 83.2

Downside support levels: 80.0/78.7

Upward resistance levels: 83.0/84.5

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The bullish advantage is weakening; be wary of a pullback.

Fundamentals

Technical aspects

Risk Disclosure