On Thursday (December 19), US crude oil continued to fall yesterday during the Asian session, trading around $69.50 per barrel. On the fundamentals, EIA inventory data showed that crude oil inventories decreased by 934,000 barrels as of December 13, while the market expected a decrease of 1.6 million barrels. The support for oil prices was relatively limited. At the same time, the Fed's December interest rate decision was implemented, and the 25 basis point interest rate cut was in line with market expectations. However, the Fed's expectation of a 50 basis point interest rate cut next year suppressed market demand expectations, so oil prices rose and fell.

In addition, the possibility of further downward acceleration of oil prices in the short term cannot be ruled out. Considering that the Christmas holiday is approaching and the contract is delivered, the market volatility is gradually decreasing. It is likely to fluctuate downward during the day. Continue to pay attention to the US third quarter GDP data and PCE price index.

Throughout the week, the price of crude oil did not fluctuate much, but it turned downward after touching the upper track of the daily Bollinger Band several times. In addition, the weekly and monthly lines were in a stage of large-scale decline. Since it fell below the 70 mark, it is enough to look down from the upper track of the daily line. Today's resistance first looks at the pressure range formed by 70-70.5, and then refer to the high point suppression range of 71.3-71.4 for an upward entity breakthrough.

For support, pay attention to the 68.7 position of the daily SAR indicator extension point, followed by the 68.1 point of the 4-hour SAR extension point, and look at the 67.1 line of the lower track of the daily Bollinger Band. Overall, the weekly K-line becomes a long upper shadow Yin line as it falls, and crude oil prices are expected to continue to fall. In terms of operation, shorting on rebound is the main, and long on lows is the auxiliary. Crude oil strategy: shorting on rebound touching 70, covering short orders at 70.5, stop loss at 71.1, target 69-68, hold if it breaks down.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.