UKOIL: There is still room for a rebound

A brief analysis of the fundamentals:

Short-term movements in oil prices are likely to remain volatile, adding that a sharply stronger dollar and lower demand expectations will continue to put downward pressure on oil for the rest of the year. Continued lower oil prices will not be justified unless the economy hits a hard landing and global gross domestic product (GDP) growth shrinks. Goldman Sachs does not expect the Organization of the Petroleum Exporting Countries (OPEC) to increase production quotas this year, and sees the group’s oil output stabilizing around current levels in 2023.

UK crude oil UKOIL 4-hour chart

A brief technical analysis:

From the daily chart: the short-term price fell sharply and then rebounded slightly. The medium-term graphic structure is still declining. The MACD volume energy column begins to shrink below the 0-axis, and the RSI begins to turn its head. The short-term oil price has a demand for oversold rebound.

Long-short turning point: 99.00

Resistance: 105.00 112.50

Support: 92.00 85.00

Trading strategy: Bearish below 99.00, target 92.00, 85.00

Alternative strategy: bullish above 99.00, target 105.00, 112.50