During the Asian session on Tuesday (September 18), WTI crude oil fluctuated in a narrow range and is currently trading around 90.7 dollars per barrel. The US released two data on Friday, in which inflation was lower than expected. Crude oil quickly moved up and then went back down. Under the favorable economic data, oil prices rebounded quickly again, falling as low as 88.6, and then rebounded in a "V" shape after gaining support. Oil prices have closed with bull candles over the past week, which also showed a surge in bullish sentiment. In particular, after OPEC, EIA, and the International Energy Agency jointly confirmed the production cuts, the crude oil market is about to suffer supply shortage pressure. In the short term, the bullish pattern of oil prices can hardly change for the time being. Oil prices will rise constantly before the bearish momentum is enough. However, we still need to be wary of negative feedback from high oil prices, including higher inflation and lower consumption. As an investor, especially an institutional investor, it is better to sell at a high price, provided that the stop loss is set.  

There is no important data to see during the day, so investors need to focus on the meeting during the super central bank week, as well as the progress of the US strike.  

Trading at the daily timeframe, the current upward trend in oil prices continues. Oil prices continued to close higher yesterday, achieving 7 consecutive bull candles. Although there has only been one bear candle in the past 20 trading days, signs of technical overbought and bearish divergence of WTI have not eased. We stressed last week that oil prices urgently needed a correction, which would start at any time, mainly depending on the time when the bulls take profit which may be triggered by an event. On Friday, oil prices quickly retreated, falling as low as 88.6. After gaining support, it quickly rebounded, and the bottom also reached our first target to take profits. Judging from Friday's trend, the magnitude of the oscillation was large, and the decline was even more amazing. This also indicates that oil prices are still in a bullish trend, but the bulls are more cautious, and slight fluctuations in the market will make them quickly exit and take profits, which is basically the performance at the end of a wave of markets. The current bulls are also potential bears in the future. For this week, although the rise has not yet shown signs of peaking, the current profit-loss ratio is already very suitable for investors, who enter small positions and place a stop-loss order, to go short at each record high!

Investors are recommended to sell high. If the oil price surges to 91.1, you can try to go short with a small position in the short term. The stop loss is 91.5. The first target to take profits is 88.8, and the second target is 87.5.

Trading Direction: Short

Entry Price: 91.100

Target Price: 88.600

Stop Loss: 91.500

Support: 88.800/87.500

Resistance: 90.800/93.000