US Crude Oil Trading Strategy: Inventories Drop + Holiday Season Peak Coming, Bulls Aiming Above 80 Handle
During the Asia-Europe session on Thursday (Dec. 22), US crude was trading in a narrow range and is currently trading at $78.50 a barrel, retaining most of its overnight gains. Oil prices rose more than 3% Wednesday as US stockpiles of crude, heating oil and jet fuel fell, even as a cold snap hits the US and the holiday season is set to see a surge in travel.
U.S. crude oil inventories fell by 5.89 million barrels in the week ending Dec. 16, far more than analysts expected, EIA data showed. Meanwhile, inventories of distillates, which include heating oil and jet fuel, also fell on expectations for an increase.
Meanwhile, demand for heating oil will increase as a severe winter storm hits the United States, with temperatures expected to drop below freezing as far south as south Texas and record low temperatures in Florida and the eastern states.
Furthermore, aviation fuel consumption will also increase as the post-epidemic travel boom arrives during the year-end holiday season.
A slightly weaker dollar on Thursday also provided some support for oil prices.
Daily level:Rebounded after fluctuations and falls; MACD golden cross, KDJ golden cross, oil price has broken through the resistance of the 21-day moving average and downtrend line, the short-term bullish signal has risen and is currently testing resistance near 79.16 , the 38.2% retracement of the decline 93.72-70.08 , Further resistance is around the 80 integer mark, the 50% retracement resistance is around 81.94, the 55-day moving average resistance is around At 82.60, the 100-day moving average resistance is around 84.70, and the 61.8% retracement resistance is also around this position.
Initial support underneath is around 77.73, the high point since Dec 15, the 5-day moving average is supported around 76.61, and the 10-day moving average is supported around 75.67. long-term bearish signal.
resistence:79.16；80.00；81.94；82.70；
support:77.73；76.61；75.67；73.31；
Tips for short-term operation:Be more careful on dives.
