Remember that Thursday is Thanksgiving in the US, which makes for huge volume. , West Texas Intermediate crude traded lower again during Wednesday trading, extending north of Monday’s hammer. Right now, there seems to be little interest in owning oil as this rally has been short-lived to say the least. Remember, on Monday someone leaked a rumor that OPEC was going to increase production by 500,000 barrels per day, forcing Saudi Arabia to come out and deny the rumor. When they did, prices briefly recovered above the $80 level, but we have now broken out from there. Advertisement See Why Oil Is One Of The Most Popular Commodities TRADE OIL NOW If we were to break this „double bottom” it would open the door for a move below $75 and possibly even $72.50. This would naturally break the back of support and also question whether demand is sufficient to raise prices. After all, OPEC recently cut production by 2 million barrels a day, and while we bounced back a bit after that, the market hasn’t fallen since. Oil Could Fall Apart On the upside we can take the highs of the Tuesday session where it is possible that we can look at the above 50 day EMA just above the $85 level. For now, I think it will take quite a bit of effort to break above this area, but it could open an opportunity for the 200-day EMA just above the $90 level. Remember that oil is the „body” of global markets and needs economic activity to maintain pricing power. If freight is stagnant, it makes sense that demand for oil would decline. In a global recession, oil is completely crushed. Remember that Thursday is Thanksgiving in the US, which makes a huge volume. E-commerce is limited, but opening hours are limited. Friday will also be thin as most of the big traders in the US don’t mind going back to the office. Finally, we could see how the oil broke down in the thin medium.

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