WTI Crude Oil Price Analysis for Nov. 26, 2021

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WTI crude oil is resuming its slide after finding resistance at the descending trend line on its hourly chart. Price could be heading for the downside targets marked by the Fib extension tool.

Crude oil is down to the 38.2% Fib but seems to have enough downside momentum for a move down to the next levels. The 50% extension is at $75.65 per barrel then the 61.8% level is at $74.80 per barrel. Stronger selling pressure could take the commodity price down to the 76.4% Fib at $73.74 per barrel or the full extension at $72 per barrel.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to continue than to reverse. Crude oil is trading below both moving averages, so these could keep holding as dynamic resistance.

RSI is heading down but already dipping into the oversold region to reflect exhaustion among sellers. Turning back up would mean that buyers are taking over. Stochastic is also heading down but nearing the oversold region to suggest that bullish pressure could return soon.

Crude oil is under downside pressure as countries like the US and China are starting to release oil reserves into the global market. This could bring a possible supply glut, as warned by the OPEC and IEA.

The OPEC-JMMC is due to meet next week and might respond to pressure to increase their production targets. Recall that the cartel was unable to meet its output goals in the past months due to underproduction in some countries, but it might be forced to level up its 400K barrels per day boost to output.

Additional volatility could come in play during the Thanksgiving holidays, as volatility is light, if there are any major hints from oil-producing nations.

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