Crude oil recently suffered its largest quarterly decline on record, after finishing the month of March around the $22.00 level.
Crude oil technical analysis shows that continued losses below the $22.20 level could be extremely bearish for oil prices.
Crude oil medium-term price trend
Crude oil price analysis shows that the negative medium-term bias will remain in force while the price trades below the $53.00 level.
Looking at the price of oil from a longer-term view, the monthly time frame shows the presence of an extremely large falling-wedge pattern.
A move under key trendline support from the bottom of the falling-wedge pattern, around the 22.20 level, could cause heavy medium-term losses for oil prices.
The daily time frame continues to show a large head-and-shoulders pattern, with the downside target located around the $5.00 support area.
Watch out for further medium-term weakness in oil price if sustained weakness below the $22.20 level occurs.
Crude oil short-term price trend
Crude oil technical analysis highlights that the short-term bearish bias remains in force while the price trades below the $32.80 level.
Downside pressure is starting to increase over the short term, following the recent reversal from the $28.50 level.
The lower time frames continue to show the price trading within a falling price channel. The top of the falling-wedge pattern is located around the $23.80 level.
Crude oil technical chart analysis on the four-hour time frame shows that the bottom of the channel is currently found around the $12.00 level.
With this in mind, more losses appear likely while the price remains trapped within the falling price channel.
Crude oil technical summary
Crude oil technical analysis shows that sustained losses below the $22.20 level could lead to a further decline towards the $12.00 level. The $5.00 level remains the ultimate bearish target.