September 29 US crude oil trading strategy: oil prices may continue to pull back, but there are still opportunities for technical gains

On Wednesday (September 29), US crude oil fell by more than 1%, and it may continue to retreat in the short-term. However, the technical side is still positive for oil prices. It is recommended that conservatives wait and see, and activists can try to do more at a low level.


Daily level: Oil prices climbed higher and fell back on Tuesday, suggesting that short-sale forces began to counterattack. Oil prices continued their downward trend in Asian hours on Wednesday.

The API crude oil inventory data announced earlier unexpectedly rose, which poured cold water on the bulls. The EIA crude oil inventory announced at night may continue to be negative for oil prices. At the same time, the expectation that OPEC+ will increase production next week is also negative for oil prices.

The technical overbought signal also caused the bulls to temporarily give up betting on further increases in oil prices, but the overall technical outlook is still positive for oil prices. It is recommended that conservatives wait and see for the time being, and radicals look for opportunities to do more at low positions.

The upper resistance focuses on the July 13 high of 75.51, and further attention to the July 6 high of 76.98 and the 78 mark.

Below support, focus on the 10-day moving average at 72.86, and further focus on the 20-day moving average at 71.29 and 70 psychological barriers.

(U.S. crude oil daily chart)

Resistance levels: 75.51; 76.98; 78.00
Support levels: 72.86; 71.29; 70.00

Short-term operation recommendations: conservatives wait and see, radicals do more low.

At 15:25 GMT+8, U.S. crude oil was quoted at $74.06 per barrel.