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Fundamentals

During the Asian session on Friday (October 27), WTI crude oil fluctuated in a narrow range and is currently trading around 83.6 dollars per barrel. Oil prices continued to fluctuate downward yesterday, mainly because the Palestinian-Israeli conflict has not yet affected the major oil-producing areas, coupled with the accumulation of inventory. Asian oil prices showed signs of stabilization, helplessly encountered a series of data support, the dollar strengthened in European and American sessions, and US bond yields also rebounded sharply again. As a result, US crude oil fell as low as 82.4. Generally, our recommendations on trading yesterday were also profitable. The first position was opened before the take profit, and the stop-loss order was triggered for $0.5. However, in the second position, the profit was also $1. We have made the strategy in trading, the rest is to execute resolutely, and the result will not be much worse. As for how much can be gained, it depends on the gift of the market! We need to always be grateful.  

Geographical: The Times of Israel quoted the Israeli military news, that Daniel Hegeri, IDF spokesman, said that the Israeli army will continue to carry out limited ground attacks on the Gaza Strip after infantry units and tanks crossed the border fence on the evening of October 25, local time, and launched attacks on some military targets, infrastructure and anti-tank missile launch stations of the Palestinian Islamic Resistance Movement (Hamas). As of 9 a.m. local time on the 26th, the current round of Palestinian-Israeli conflict has caused more than 6,954 deaths on the Palestinian side. Of these, more than 6,850 people were killed and more than 17,000 injured in the Gaza Strip. In the West Bank, 104 people were killed and more than 1,900 injured.  

Today, investors need to pay attention to the US Core PCE Price Index MoM for September. There are few important data today, and the market is mainly in correction.  

Technical Analysis

Oil prices fell sharply yesterday, failing to continue the rally in previous days, and the consistency of the market was weak. Yesterday, oil prices fluctuated in a narrow range of 84.5-85 in the Asian market, and there was a trend of stabilization. However, in the European and American markets, oil prices first fell rapidly to break through 84, and then accelerated downward under the bearish data at night, falling as low as 82.4, but failed to break the previous day's low of 81.9. Oil prices then rebounded slightly, hovering above 83, and finally closed a full bear candle. Our comprehension is that the spirit of the bears is willing, but the flesh is weak at the moment! They attempt to sell into corrections but are dominated by fears, so they have to repeatedly wash the trades. In the current fundamentals, there is no marginal change and the current Middle East conflict is difficult to change or cool down in the short term, which will probably explode one day, like the sword of Damocles hanging over the sky. If the loss ratio is low on a trade, it's a firm way to stay away. Because if you only focus on the interest, what you won't see will be your principal!  

It is recommended that investors mainly go long at low. If the oil price retraces largely to 83.2, you can go long with small positions. The stop loss is set at 82.7, the first target to take profit is 86.3, where you can reduce your positions and move the stop loss to break even, and the second is 88.3. If the oil price retraces again to 81.8, you can go long in the second position, where you could stop loss for $0.5, and the target to take profits is the same as the first one.

Trading Recommendations

Trading Direction: Long

Entry Price: 83.200

Target Price: 86.300

Stop Loss: 82.700

Support: 82.700/80.600

Resistance: 86.300/88.300