November 3 US crude oil trading strategy: EIA data may be negative for oil prices, it is recommended to go short on rallies

On Wednesday (November 3), U.S. crude oil fell slightly. In short-term attention to the impact of EIA crude oil inventory data on oil prices, investors are advised to short rallies.


Daily level: Oil prices fluctuate at high levels in the short-term. Investors are waiting for the evening’s EIA crude oil inventory data and the OPEC+ ministerial meeting on Thursday.

From a technical perspective, oil prices are still running above the Bollinger Band Middle Rail. The middle rail 81.97 has become an important support for the downward oil price. At the same time, the MACD crosses and the RSI falls, which is not good for the bulls.

The EIA data released within the day may once again be negative for oil prices, so investors are advised to take the opportunity to short rallies.

Focus on the pressure of the integer mark on the top, and 81.97 for the initial support below. The bulls need to enter the market cautiously below this level. The next support looks at the low of 80.58 on October 28 and the high of 79.78 on October 6.

(U.S. crude oil daily chart)

Resistance levels: 83.00; 84.00; 85.00
Support levels: 81.97; 80.58; 79.78

Short-term operation advice: short rallies.

At 14:52 GMT+8, US crude oil was quoted at US$82.64 per barrel.