Elliott Wave Aanalysis: Crude Oil Can Stabilze at $67-$72

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