Monthly Crude Oil
Crude oil created a multi-year narrowing pennant pattern over a 4-year time frame (2010-2011).
Once support of this pattern broke at (1), crude imploded, falling 70%. That collapse impacted all oil-producing states and especially Texas.
The rally off the 2016 lows saw oil rally back to the 38% retracement level of its 2008 highs/2015 lows, where it looks to have created a double top.
Now, crude oil is imploding after creating a double top and breaking rising support at (2). It has declined more than 25% in just a few weeks.
Odds are high that crude oil’s large decline will impact all oil-producing states, particularly Texas, which could have ripple effects through the overall economy.
Watch the $47 level, as it becomes an important support test.