During the Asian session on Monday (October 20th), US crude oil traded around $57.17 per barrel. Last Friday, US crude oil hit a low of $56.15 per barrel since early May. Oil prices recorded a weekly drop of nearly 3% following the International Energy Agency (IEA)'s forecast of a growing supply glut and the agreement by US President Trump and Russian President Vladimir Putin to meet again to discuss Ukraine.

However, market sentiment has eased somewhat, with trade concerns temporarily easing, providing some support for oil prices. This week's talks remain a key market focus, with investors generally expecting the talks to maintain the previous positive tone, thus limiting the downside for oil prices.

From a daily perspective, US crude oil remains consolidating above $57, with the short-term moving average flattening, indicating limited upward momentum. The shortening of the MACD momentum bar and the easing of short-term bullish momentum suggest the market is in a convergence phase before choosing a direction.

If the price breaks through the resistance zone above $58, technical indicators suggest it could regain upward momentum, opening the way for a move to $59.3-60. Conversely, a break below $56.5 would heighten the risk of a correction, potentially targeting $55.8. In summary, our trading recommendation for crude oil today is to short at $58.00, with a stop-loss at $58.60 and a target at $56.50.

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.