Tight supply and demand support confidence, Brent crude continues its strength

A brief analysis of the fundamentals:

On Monday (May 23), the increase in demand for crude oil in the United States brought some support to oil prices. Factors such as the intensified conflict between Russia and Ukraine also provided bullish factors in geopolitics. Brent crude oil edged higher and closed at $113.42 per barrel. As the risk of economic recession approaches and changes in supply factors increase, it is still difficult to shake the high and volatile situation of oil prices, but the short-term correction of oil prices may increase, and the market fluctuates disorderly. Pay attention to avoiding risks.

UK crude oil UKOIL 4-hour chart

A brief technical analysis:

From the 4-hour chart, oil prices rebounded again after stepping back on the 21-week moving average, and the overall performance picked up. The moving average system was flat, the MACD red column was shortened, and the RSI indicator was flat.

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