Crude Oil Tests $67.73 Support After 43% Drop From March Peak

Crude oil hit a new trend low of $67.73 on Thursday before buyers stepped in, testing a support zone that could determine whether the long-term bull trend resumes or breaks down.

The decline from the March 2 breakout has now retraced 78.6% of that move, with the Fibonacci level at $68.81 giving way intraday before the session recovered toward $69.50. Thursday's attempted recovery above Wednesday's low of $68.65 needs a daily close above that level to confirm, traders said.

The support zone runs from the 78.6% retracement down to roughly $66.57, a prior resistance range from early this year that also aligns with a downtrend line. That area is where the large bullish wedge formation broke out, ending a multi-year bearish correction from the 2022 peak near $131.31. The wedge breakout produced one leg up. This is the first significant retracement since then.

A successful defense of support followed by renewed buying could trigger a strong bullish reaction, several traders said. The alternative is a breakdown that would invalidate the wedge structure entirely.