Crude Oil Can Stabilze At $70-$72

Markets are slow as most of traders will stay aside today after Thanksgiving yesterday in the US. So we think there will be no real changes in the price action and that market will stay in risk-on mode, at least from a technical perspective. The only thing that can shake the markets a bit going into a next week are potential new COVID restrictions in China after more cases were reported recently. Lower energy prices can also cause some volatility on CAD, NOK, and MXN after Saudi and Iraqi energy ministers said that they will introduce additional measures to ensure stability in the oil market. We see the energy coming down into the fifth wave of decline with some support seen at 72 area where the price may stabilize, at the lower side of a wedge pattern; a leading diagonal in wave A. In fact, weeks back the White House has released a fact sheet that establishes its intention to refill the Strategic Petroleum Reserve when oil prices are between $67 and $72, so yes, the downside can be limited.