3.30 Crude Oil Short-term Pullback, Do Not Chase the High

On the four-hour chart, crude oil has been steadily climbing from low levels, remaining in a strong oscillation/biased bullish structure at high levels. The medium-term upward channel has not been broken. The candlesticks are mostly small doji and small candles with increased upper and lower shadows, indicating consolidation at high levels. The MACD has a bullish crossover with a rising red histogram, showing strong bullish momentum. RSI is relatively strong but not overbought. There is still room for upward movement. The Bollinger Bands are narrowing, with prices moving between the middle and upper bands, indicating strong but narrowing volatility.

On the one-hour chart, after a rally during the Asian session, prices experienced slight consolidation. Bullish momentum is waning, and the risk of chasing longs at high levels is increasing. The MACD histogram is shrinking, showing signs of bearish divergence. The probability of a short-term pullback is higher. The MA5/MA10 divergence is significant, indicating a need for a pullback. Resistance levels are around 103.5-104, while support levels are at 99-97. Overall, today’s crude oil trading strategy is to buy on dips!

Crude Oil Trading Strategy: Buy on dips around 99-98.5 in batches, with a stop loss of 98 points, targeting 102.

Disclaimer: The above content is for sharing personal ideas and opinions only and does not constitute trading advice.