Crude oil futures briefly dipped below $40 a barrel on Wednesday, as crude’s November drop continues. And one technical analyst sees oil falling much lower even from these levels.
Todd Gordon of TradingAnalysis.com begins by noting that in the financial crisis, crude oil fell 77 percent from its highs.
“Technicals say that in a good, solid pullback we should see an equal-leg push in the current move lower,” Gordon said Wednesday on CNBC’s “Power Lunch.” “A 77 percent drop from the reactionary high up at about $114 puts us at $26 in the crude oil market.”
