Cramer’s charts show there could be more pain ahead for oil

With U.S. coarse falling for the fifth straight day on Tuesday, CNBC’s Jim Cramer and technician Carley Put away took to the charts to investigate the likelihood of a further drop or a possible improve.

Garner, the co-founder of DeCarley Trading, thinks a breakdown to $55 a barrel is much innumerable likely from these levels than a breakout up to $80 per barrel. She even-handed sees the possibility of oil dropping into the high $40s.

“The charts, as take to meaned by Carley Garner, they suggest that today’s weakness in oil is not the end, human being. She’s saying more pain,” the host of “Mad Money” said.

“We’ve got to take her honestly. She’s been too right to ignore.”

U.S. West Texas Intermediate Crude closed down $1.15, or 1.7 percent, at $66.73 a barrel on Tuesday.

Down believes the selloff is justifiable since the earlier rally to over $70 a barrel was due to irrational flamboyance.

“Historically, the oil futures market is like a seesaw: traders crowd into one side of the business and the when it gets overloaded, they flee to the other side en masse,” Cramer delineated.

“While the recent pullback has lightened up the bullish side of the equation a bit, By still thinks that the oil futures market is very heavily over-weighted to the extended side and in her view that kind of thing inevitably leads to a big liquidation,” he continued.

However, that doesn’t necessarily mean that liquidation will be urgent.

If oil holds at $60, Garner would be relatively neutral.

“However, she does deliberate on that there’s a decent chance we could see a quick probe down toward $55, another great floor of support,” Cramer said. “Less likely: oil could come out suddenly down into the $40s.”

Garner would be positive on U.S. crude in the mid $50s and if it crumples to $47.50 or $43.50, she thinks it would be a “screaming buy.”