The best opportunity is when crude oil falls
💡Message Strategy
Crude oil futures fell in the European session on Monday (June 16), giving up earlier gains, as a new round of hostilities between Israel and Iran had limited impact on oil production and exports.
WTI briefly rebounded to $77.49, close to last week's high, which was also our second profit target, but failed to break through the key resistance level near $78.09.
Oil prices surged 7% on Friday, driven by geopolitical risks, pushing crude to its highest level since January. However, Monday's reversal reflected the lack of immediate threats to supply routes, especially the strategically important Strait of Hormuz.
If Iran's production drops sharply due to the conflict, the global oil supply buffer will be quickly exhausted and oil prices may usher in a new round of surges. Faced with this complex situation, investors, oil-producing countries and consumers need to be prepared to meet the possible energy storm.
This is also the reason why we repeatedly emphasize that crude oil should be long when it falls. We can foresee its upward momentum, and the pullback is only in a moment without any signs.
📊Technical aspects
The short-term (1H) trend of crude oil continued to fluctuate upward, and the price near 74 was tested. The moving average system relies on the bullish arrangement of oil prices, and the short-term objective trend direction remains upward.
In the morning, the oil price hit a new high near 75.30, and then fell back and closed with a negative real candlestick. The short-term momentum is still bullish, and it is expected that the trend of crude oil will continue to maintain a high-level oscillating upward rhythm.
💰 Strategy Package
Long Position:69.50-70.50
The first target is around 73.00
The second target is around 75.00
