January 12 Oil Price Trend Analysis

Last week, crude oil showed a pattern of initial suppression followed by a rebound, with a volatile rally. After dipping to a low of 55.7 at the beginning of the week, it quickly started a continuous upward trend, ultimately closing the weekly candle in positive territory at 58.7, with the highest reaching around 59.7. Bulls regained some of their previous losses.

From a higher time frame perspective, the weekly chart indicates that bullish momentum has not yet exhausted. In the short term, the primary focus is on breaking through the 60 integer level. If it can stabilize above this level, there is potential for further upward movement, with targets around 62. On the daily chart, oil prices successfully broke above the upper Bollinger Band and continued to rise, maintaining a predominantly bullish outlook at the start of the week.

In the short-term intra-day view, the four-hour chart remains in a oscillating upward trend, and this morning, the hourly chart surged with a gap higher, directly testing the 60 resistance level. However, after encountering resistance near 59.7, a slight pullback occurred. Key support levels to watch below are: the 59 level, which is a critical intra-day support/resistance boundary, and the 58 support level.

Trading strategy-wise, it is recommended to adopt a mainly bullish approach within a volatile range, buying on dips near support levels. It is important to note that if the 60 level cannot be effectively broken, the market is likely to enter a range-bound consolidation phase, requiring timely adjustments to trading strategies.