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Crude Oil Gives Up Early Gains In Thin Trading
By: Christopher Lewis | November 25, 2022

• The crude oil market has initially tried to rally during the trading session on Friday but gave back gains as a lack of liquidity would have kept the markets somewhat stagnant.

WTI Crude Oil Weekly Technical Analysis

Crude oil markets have initially tried to rally during the trading session on Friday, but a lack of volume and trading hours probably had more of an influence than anything else. It looks like the $80 level also formed a bit of a resistance barrier, so with this being the case it looks like we are going to settle on forming and inverted hammer. And inverted hammer of course is a candlestick that a lot of people look at as a potential signal. Ultimately, if we break above the top of it, that could be bullish, but a breakdown below the $76 level could be rather negative.

The real question at this point is whether or not we are forming some type of “double bottom”, or if we are seeing this as a route to much lower levels. If we break down below that hammer from earlier in the week, things could get ugly for the short term.

Brent Crude Oil Weekly Technical Analysis

Brent markets also have initially tried to rally during the trading session on Friday, but just as it’s WTI cousin, we have seen a lot of selling pressure. The $82.50 level is an area you need to be paying close attention to, because we had bounced from there in order to form a massive hammer earlier in the week. If we break down below there, then it’s likely that oil goes looking to the $80 level in the Brent grade, and anything below there could open up the floodgates. Alternatively, if we break above the top of the inverted hammer for the Friday session, it opens up the possibility of a move to the $90 level.

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