WTI Crude Breaks $75 Support, Eyes $65 Next

WTI Crude Oil fell through the $75 support zone, accelerating the downward impulse wave C of the intermediate ABC correction that began in March. The break also violated the daily down-channel trendline in place since May and the 61.8% Fibonacci retracement of the upward impulse that ran from January to March.

That support zone had held for several weeks, and its failure triggered a quick move lower. The current decline is labeled as wave C of a three-wave corrective pattern off the March peak. Waves A and B preceded it. The sharpness of this latest leg suggests the correction is still unfolding, not exhausting.

The next major level sits at $65, the target for the completion of wave C based on common Fibonacci extensions and prior support from late 2024. A weekly close below $75 would confirm the breakdown. A close back above $75 and a move above the channel trendline would invalidate the wave C count and suggest a false break or a truncated correction.

The daily chart shows little in the way of intermediate support between $75 and $65. A quick test of the $65 area looks probable unless buying volume picks up near current levels. The bearish setup remains intact as long as the price holds below the broken support zone.