In the early Asian market on Friday (December 20), the price of US crude oil is currently trading around $69.1 per barrel. Previously, policymakers from the Federal Reserve and the European Central Bank expressed caution about further easing monetary policy, exacerbating people's concerns that weak economic activity may weaken oil demand next year, and the increase in oil prices was limited. The market expects that there will be an oversupply of global oil next year, which will put pressure on oil prices again.

In terms of geopolitics, Yahya Sarea, a spokesman for the Yemeni Houthi armed forces, said on the 19th local time that the Houthi armed forces successfully used a drone to attack a military target in the Jaffa region of Israel. Later, Israeli Prime Minister Netanyahu said that the Yemeni Houthi armed forces will pay a heavy price for attacking Israel.

Crude oil showed a high-rise and fall trend on Thursday, encountering resistance and falling around $70.55, and rebounded to the lowest point of the decline around $69.0, and finally closed at around $69.193. The daily level includes a negative inverted hammer line with a long upper shadow line. Two consecutive inverted hammer lines further indicate that the upper resistance level is suppressed, and the bearish thinking continues today.

From the four-hour level, the Bollinger Bands are in a flat sign, and the moving average moving average system is sticking. After the oil price touched the 70.9-71.4 area, the upward momentum has changed. It is currently in a range of fluctuations. The oil price has been adjusted back many times and hovered around $68.6. After breaking down again, the oil price is expected to continue to be short. Based on the above analysis, crude oil continues to be under pressure from above. Today's operation considers rebound shorting as the main, supplemented by low longs. Pay attention to the resistance of $69.6-70.7 on the top and the support of $68.6-67.6 on the bottom.

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.