December 18th afternoon crude oil outlook: Limited rebound space, precise layout at key positions

During the Asia session on Wednesday, the price of West Texas Intermediate (WTI) crude oil fluctuated narrowly around 55.75, boosted by increased disruptions in crude oil supply from Latin America, with prices slightly rising.

From a daily chart perspective, the current oil price is in a secondary oscillation rhythm, having closed with four consecutive bearish days and breaking below the mid-term strong support at 56. The moving average system shows a standard bearish arrangement, clearly indicating a downward objective trend in the medium term. After breaking the support, the medium-term downward rhythm of crude oil has officially begun.

In the short-term 1-hour level, the price movement shows strong rebound characteristics, successfully breaking above the moving average system, entering a consolidation range in the short term. Considering the trend structure, crude oil overall presents an alternating upward pattern, with a subjective trend biased towards bullish; the MACD indicator crosses above the zero line, with bullish momentum continuously strengthening. The intraday rebound is likely to continue, but the upward space is relatively limited.

Long position: 56.20, stop loss: 55.50, target: 57.20