14.6% down
At today's lows, crude oil prices fell by $11.80 or 14.6% from the recent Swing High. In comparison, we placed it at the low end of the bear correction that occurred since the April 2024 peak. Since then, four modifications have been identified, ranging from 14.7% to 18.3% decrease. These measured movements indicate that the current correction may be nearing completion and that the crude oil may drop a little more before the correction is complete.
Monthly bearish reversals indicate a drop in prices
Crude caused a monthly bearish reversal earlier this month (not shown), continuing to trade near this month's lowest. This shows aggressive sales with low monthly support ranging from around $67.11 to $66.65. Given the determinism of bearish retracement, these low price levels may still be tested before a notable bounce. There will be another three days three days before the end of February. This means that near this month's lowest, the crude risks ending the moon in a bearish position.
Approaching major pricing levels
A low trendline provides a potential support line, but the next low support zone is between $67.11 and $66.86. That range is determined by two previous provisional swing lows established at the end of last year. They represent more important areas of support as they more clearly indicate the possibility that a larger bear trend will continue if they fall below that price range.
Since the $131.31 swing high in March 2022, crude has been on a downtrend with a series of low swing highs and low swing bass. However, it fell to $65.65 in September, with a new lower swing drop in the downtrend. However, that decline was not below the previous swing decline at $63.67 from May 2023. If the $66.86 price area is not retained as support, you could be challenged in the September Support Zone.
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