Charts suggest the ‘mother of all buying opportunities’ for oil is coming next month, Cramer says

CNBC's Jim Cramer said Tuesday that investors should cogwheel up to bargain lipid adjacent month, relying connected charts investigation from Carley Garner.

"She thinks determination could beryllium 1 past washout from this week, perchance aboriginal done December, and that washout could instrumentality crude down to the debased $70s, oregon adjacent the mid-$60s. Once we get there, she believes that could beryllium the parent of each buying opportunities," helium said.

West Texas Intermediate crude futures, the U.S. benchmark for oil, saw wide swings this week aft the Wall Street Journal reported Monday that OPEC members were considering an summation of up 500,000 barrels per time for OPEC+'s December meeting. Saudi Arabia aboriginal denied the report. News astir Covid-related deaths successful China implicit the play besides added to oil's volatility.

WTI crude futures settled astatine $80.95 a tube connected Tuesday.

To explicate Garner's analysis, Cramer archetypal examined a illustration of the seasonal signifier successful WTI crude.

This illustration shows however lipid tends to behave astatine antithetic points during the twelvemonth and reveals that the week of Thanksgiving tends to beryllium disfigured for oil, according to Cramer. "Historically, immoderate of the astir devastating lipid declines person occurred connected oregon astir Thanksgiving day," helium said.

The illustration shows that lipid futures fell $10 connected the Friday aft Thanksgiving successful 2021. Crude tumbled 10% during Thanksgiving week successful 2018 and declined astir 14% successful 2014, helium added.

Garner's mentation for wherefore Thanksgiving tends to bring specified symptom for lipid is that the week includes the past trading time for December lipid futures and that there's ever an OPEC gathering successful precocious November oregon aboriginal December.

"Throw successful the information that vacation weeks thin to person precise airy volume, that means immoderate moves thin to get blown retired of proportionality due to the fact that it doesn't instrumentality [as] overmuch to determination a commodity — oregon a banal frankly — during these lighter periods," Cramer said.

For much analysis, ticker Cramer's afloat mentation below.