Oil prices are under pressure, and the downward trend is clear. Light Crude Oil (CL) has broken below the April 2025 low of $55.12, confirming a bearish pattern that's been in place since March 2022. This signals a continuation of the decline. Let's break down the technical details.
The recent drop from the October 24, 2025, high is following a five-wave Elliott Wave impulse pattern, which helps us understand the ongoing weakness. From the peak on October 24, wave ((i)) finished at $57.10. Then, wave ((ii)) saw a rally that took the form of a zigzag pattern. Within this, wave (a) ended at $59.97, wave (b) at $58.28, and wave (c) reached $60.50. This completed wave ((ii)), setting the stage for further declines.
Following this, oil prices turned lower in wave ((iii)). Wave (i) ended at $58.08, and wave (ii) reached $59.05. Wave (iii) is currently progressing as an impulse of a smaller degree. Within this, wave i ended at $57.01, wave ii rallied to $58.19, and wave iii dropped sharply to $54.98. A corrective bounce in wave iv extended to $59.19, but the overall momentum remains downward.
Here's where it gets interesting: As long as the price stays below $60.50, any rallies are expected to be short-lived, potentially in corrective sequences. This technical setup suggests that the bearish trend will continue. This reinforces the broader bearish outlook for crude oil prices.
What do you think? Do you agree with this analysis, or do you see potential for a price reversal? Share your thoughts in the comments below!
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