Bearish forces drove crude oil to a new corrective low of $57.29 on Thursday, etching a lower daily high and low. Trading hovers near the session’s bottom as of this writing, with a wide red candle signaling strong selling and a probable close in the lower end of the range. A finish below $57.77 would cement the bear trend’s continuation, unlocking lower targets amid evident downside conviction.
Support Failures and Extension Risks
The recent 88.6% Fibonacci retracement at $58.39 crumbled today, alongside the lower boundary of a potential falling bull wedge pattern. This dual failure hints at extended weakness, potentially mirroring April and May lows. A support confluence spans $56.47 to the $55.32 trend low, where buyers might emerge to halt the slide.
Rebound Potential and Resistance Levels
From the recent swing high of $66.77, the accelerated drop sets the stage for a sharp bullish snapback once support solidifies. Initial dynamic resistance aligns at the 10-day average and prior interim low around $60.79, with another floor at $61.84 possibly flipping to overhead pressure, joined by the 20-day average. The breached bull wedge’s upper downtrend line should cap upside, diminishing breakout odds in the expanded pattern.
