Brent soars on sudden EU agreement

A brief analysis of the fundamentals:

On Monday (May 30), Brent opened sharply higher at $116.92 a barrel after the President of the European Council claimed that the EU had reached an agreement on embargoing Russian oil. In addition to tight supply pushing up oil prices, the recent recovery in risk appetite in financial markets has also contributed to the strong performance of oil prices, which also makes investors more optimistic about the outlook for oil prices. There is no obvious short-term negative risk, and the basic judgment of maintaining a strong oil price is maintained.

UK crude oil UKOIL 4-hour chart

A brief technical analysis:

Looking at the 4-hour chart, oil prices have continued to rise based on the 21-week-old moving average. The short-term trend is strong, the MACD red column has increased, and the RSI indicator has flattened.

Long-short turning point: 113.50

Resistance: 117.00 120.00

Support: 110.00 107.00

Trading Strategy: Bullish above 113.50, target 117.00 120.00

Alternative strategy: Bearish below 113.50, target 110.00 107.00