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 Oil imploded, falling 70%. This collapse impacted all oil-producing states and especially Texas.
The rally off the 2016 lows, saw Crude Oil rally back to its 38% retracement level of its 2008 highs/2015 lows, where it looks to have created a double top.
Crude Oil is now 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 the large decline in Crude, will impact all oil-producing states and especially Texas. A slowdown in Texas can have ripple effects on the overall economy.
Watch the $47 level, as it becomes an important support test!
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