During the Asian session on Tuesday (November 28), WTI crude oil fluctuated in a narrow range and is currently trading around 75.3 dollars per barrel. Yesterday, oil prices fluctuated widely, closing a small bear candle with long upper and lower shadows, and the gap due to opening lower still was not filled. Yesterday, oil prices basically retraced as expected. After the hourly candlestick chart showed a reversal signal of one bear candle covering two bull candles, oil prices declined continuously at the hourly level. Eventually, the price began to rebound after the decline stopped at 74.1, rebounding by $2 and rising as high as around 76.3. The main factor leading the decline in oil prices was news on Monday that Saudi Arabia was seeking output cuts from other OPEC+ members, while some members expressed opposition. However, in the face of the imminent meeting, the bears did not persist, and bears taking profits pushed the rebound in oil prices. At the moment, the market is extremely weak. In other words, the bulls are insecure as they have less expectations about the meeting in 2 days. Currently, investors are worried about their positions, just because the market is now dominated by bearish momentum. If bulls want to regain confidence, production cuts need to be expanded, but the probability is very small. For bulls, they may just want Thursday to come faster. As for the outcome of the meeting, my view is that OPEC+ still has influence, and member countries still need the organization. After weighing the pros and cons, there may be slight bearish momentum in the end, and the original production cuts may be maintained. In this regard, after a deep fall in oil prices, there is still a good opportunity for traders to try to go long.  

Data: US annualized new home sales in October were 679,000, with an expectation of 723,000.  

Today's attention: US FHFA home price index for September, consumer confidence index for November consultation, API crude oil inventories, and FOMC members' speeches. Traders should mainly focus on the relevant news and results of this week's OPEC+ meeting.  

Oil prices fluctuated and fell yesterday under the news, falling as low as 74.1, and then rebounding quickly to 76.2. Finally, the price closed with a Doji Star with long upper and lower shadows, showing resistance to decline. At present, the market has accumulated a lot of gaming positions in the 74-75 area. If it cannot break below 73.8 at the beginning of the week, crude oil may have to rebound strongly and probably can reach 77.1 or higher. Currently, the golden cross of MACD begins to widen upwards in the 1-hour K-line, and a bullish piercing line has shown. Perhaps, the Asian market will rebound slightly, and the Doji Star in the daily chart also seems to show a stable trend in the short term. During the day, traders should focus on the support situation around 73.8, and the upper resistance around 77.1 should also be paid attention. Aggressive traders can trade in this range and mainly focus on the opportunity to enter long positions at lows.  

Trading Direction: Short

Entry Price: 76.000

Target Price: 73.800

Stop Loss: 76.200

Support: 73.800/72.500

Resistance: 77.100/78.500