Crude oil surged to 62.20 yesterday before reversing and heading lower, continuing to decline. In the afternoon, it was repeatedly tested at the support level of 58.76 but did not break below, indicating that the bearish momentum is clearly weakening. By the close, the bulls started to show signs of activity, laying the foundation for today's rebound.

Today’s opening continued yesterday’s bottoming pattern, and the slightly strong oscillation established the main tone of initially going long during the day and then adjusting on rallies.

The fundamentals provided substantial support for oil prices. The Fed’s easing expectations are heating up, leading to a rise in commodity valuations. Meanwhile, the Red Sea shipping risk continues to ferment, and OPEC+’s compliance with production cuts remains high. These factors collectively support a bottom for crude oil prices.

From a technical perspective, there are more interesting signs — a stabilization has appeared after an oversold condition, and the momentum for a rebound is gradually gathering, creating opportunities for short-term trading.

In terms of trading strategy, Brent crude oil can be bought around 58.8, with 58.3 set as a stop-loss. The first resistance target is near 59.7. If it can break through, attention should also be paid to the 60.6 to 61.2 area above.