On Tuesday (July 28), US crude oil opened continuing the previous day's downward trend, with prices falling to around $81, down about 9% from Friday's closing price of nearly $89. Meanwhile, Brent crude oil fell below the $85 mark. This sharp market correction was mainly due to investors quickly digesting expectations of easing tensions in the Middle East and prematurely withdrawing from the risk premium previously built due to supply disruption risks.

This oil price decline primarily reflects a change in market sentiment, rather than an actual recovery in supply. The US suspended military operations after 13 consecutive nights, and there has been no further escalation for several days. The US President stated that there is still a chance for negotiations, but if no progress is made, stronger measures may be taken. The market therefore believes that short-term tensions may ease, pushing crude oil futures prices down rapidly.

From a daily chart perspective, WTI crude oil previously surged due to geopolitical risks, even breaking through the $90 area. However, the recent sharp pullback has brought prices back to the key area of the upward trend. In terms of market momentum, the daily stochastic oscillator remains in high territory, but this signal reflects more of a technical lag after the previous rise and does not necessarily indicate a trend reversal.

WTI crude oil's short-term (1-hour) trend continues to make new lows. The moving average system is bearish, indicating a downward objective trend in the short term. Bearish momentum is dominant, with consecutive small-bodied bearish candlesticks. Oil prices continued to make new lows in early Asian trading, remaining in a downward trend. It is expected that the downward trend will likely continue throughout the day. Today: Short at 82.50, stop loss: 83.60, target 80.00.

Disclaimer: The article is contributed by the market analyst from Binkex 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.