As U.S. energy markets approach the Thanksgiving holiday this Thursday liquidity will begin to evaporate. In the meantime crude oil bulls in New York appear to be caught in a virtual purgatory between congestion from October around 82.87 to 83.44 and support out of September from 78.90 to 77.81.
The Schork Report is currently holding a bearish view in our daily bias alert for oil. Be that as it may, the bulls have been able thus far to establish a floor below $81 in the January Nymex WTI market.
If you are bearish in the short-run, like we are, that is not good. After all, markets follow the path of least resistance. Therefore, we now run the risk of bearish momentum flaming out.
For instance, yesterday the market bottomed at 80.68, but rallied more than a dollar into the close. Last Thursday the market sank to 80.92, but then rallied over $82 and before that on Wednesday the market sold down to 80.65 (i.e., 3 cents below yesterday’s low) but finished back above $81. The average of these three low prints is 80.75.