CL New York oil futures ─ Oil prices retreated slightly, the Fed's interest rate cut triggered economic concerns

Oil prices fell on Wednesday as the Federal Reserve's interest rate cut stoked concerns about the health of the U.S. economy, while investors attributed a drop in crude inventories to a brief bout of weather. U.S. crude oil futures for October delivery settled at $70.91 a barrel, down 28 cents. In addition, the U.S. Energy Information Administration (EIA) said that in the week ended September 13, U.S. crude oil inventories fell by 1.6 million barrels to 417.5 million barrels. Crude oil inventories fell to their lowest levels in a year, helping limit losses in oil prices.

As seen on the technical chart, RSI and stochastic index are rising, indicating that oil prices will maintain a recovery stage in the short term. The current resistance level is estimated at the 25-day moving average of US$72.00; the key is the downward trend line of US$73.50. If oil prices can break through this area in the future, the weakness in the past two months may be reversed, and the extension target is 74.50 and 100. The daily average is 77.30. As for the lower support, it is expected to be 70 and 69.60, and the larger support is expected to be 68.60 and 67.20 US dollars.

Estimated volatility:
Resistance 72.00 – 73.50* – 74.50 – 77.30
Support 70.00 – 69.60 – 68.60 – 67.20

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