On Friday (December 5th) in Asian trading, US crude oil prices were trading around $59.6 per barrel. The market widely bets that the Fed will initiate a new round of rate cuts next week, and the continued weakening of the US dollar has boosted oil prices. Geopolitically, the lack of progress in peace negotiations has significantly reduced the possibility of Russian oil returning in the short term, and supply concerns stemming from tensions between the US and Venezuela have driven international crude oil prices higher for two consecutive days.

The continued geopolitical tensions limit supply recovery, and the tight balance expected due to supply constraints has kept the market bullish on future oil price trends. In the short term, continued conflict means improved global liquidity and tightening supply, creating a situation of "rising demand and stable supply," which provides positive support for international oil prices.

From a daily chart perspective, US crude oil is transitioning from a weak consolidation to a strong rebound structure. Recently, prices have rebounded steadily after forming a clear bottom around $58, successfully breaking through the short-term moving average convergence zone, indicating gradually strengthening buying power. The daily candlestick chart shows a continuous bottoming structure, with the moving average system showing the beginnings of a bullish alignment. The MACD histogram is narrowing and approaching the zero line, indicating a significant weakening of bearish momentum, and the market may attempt further upward breakout.

Crude oil's short-term (1H) price action found support at the lower edge of the range and remains within it. Oil prices retreated from the $60 level in the early morning, with the moving average system diverging upwards, but the short-term objective trend remains upward within the range. Momentum has shifted from a stalemate to an upward bias. It is expected that crude oil will break out of the range upwards today, but the upside potential is limited. Today: Buy at $59.20, stop loss at $58.80, target $60.20.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.