UKOIL: The rebound continues with short selling

A brief analysis of the fundamentals:

The premium of Brent crude oil spot to futures hit a record high, indicating that tight supply conditions persist at current prices. The spot market is still screaming that supply is very, very tight. Even if Biden persuades OPEC to increase supply, the situation will only be temporarily relieved and will not solve the problem of underinvestment in the entire energy market. The recent drop in crude futures amid recession fears has heightened underinvestment risks, as the current price curve hampers much-needed production growth.

UK crude oil UKOIL 4-hour chart

A brief technical analysis:

From the 4-hour chart: the short-term exchange rate continues to be weak, the medium-term graphic structure is weak, and the trend line is broken, the MACD volume energy column 0-axis decreases volume, the RSI weakens slightly, and the probability of weakening again after a short-term rebound is high.

Long-short turning point: 109.00

Resistance: 116.00 125.00

Support: 100.00 90.00

Trading strategy: Bearish below 109.00, target 100.00, 90.00

Alternative strategy: bullish above 109.00, target 116.00, 125.00