CRC Is Down 11%. What History Says About This Pullback

California Resources Corporation Just Moved Into the Green Zone. What History Says About This 11% Pullback.

California Resources Corporation (CRC) has transitioned from the yellow zone to the green zone as of May 18, 2026. The stock currently carries a Drawdown Severity Score™ of 1.8, which we categorize as slightly elevated. While the equity remains 10.9% below its all-time high of $70.13, the improvement in its internal risk metrics suggests a shift in the current price action.

Tracking the Move From the Yellow Zone

The move into the green zone follows a period where the Drawdown Severity Score™ reached higher levels. Our data shows that California Resources Corporation (CRC) has spent 9 days in the current drawdown. During this window, the price reached $62.50, representing a -10.9% decline from its peak. This 9-day duration is significantly shorter than the historical average drawdown duration of 57 days for this specific asset.

The transition from a yellow zone to a green zone indicates that the severity of the price decline is normalizing relative to the stock's historical volatility. We monitor these zone changes because they provide context on whether a sell-off is accelerating or stabilizing. In this instance, the Drawdown Severity Score™ of 1.8 places the stock in a more stable risk category than it occupied during the previous week.

Current Drawdown vs. Historical Averages

The current -10.9% drawdown is deeper than the average max drawdown of -8.4% recorded across the 33 historical drawdown events we have tracked for this stock. Despite being deeper than the average, the speed of the current move is noteworthy. Having reached this level in only 9 days, the current pace of the decline was rapid compared to the 57-day average duration typically seen in CRC pullbacks.

Our data indicates that the Drawdown Severity Score™ currently sits at 1.8. This score is calculated by comparing the current price movement against the historical behavior of the asset. A score in the green zone suggests that while the stock is down from its high, the movement is not currently displaying the extreme characteristics often associated with prolonged or systemic corrections.

Historical Performance of Comparable Drops

When examining the history of California Resources Corporation (CRC), we looked for instances where the drawdown surpassed the 25% threshold. Our data shows this has happened 4 times in the company's history. It is important to note that this is a small sample size, and historical averages based on only 4 events should be viewed with that caveat in mind.

For those 4 comparable drops of 25% or more, the average duration of the drawdown was 234 days. The current drawdown of -10.9% is less than half the depth of those more severe historical events. However, observing how the stock behaves when it exceeds its average -8.4% drawdown provides a framework for understanding the current risk environment.

Data Limits and Analysis Framework

This analysis relies exclusively on price and drawdown history provided by our proprietary data. We do not incorporate external factors, market sentiment, or fundamental shifts into the Drawdown Severity Score™ or this report. Our focus remains strictly on the mathematical reality of the stock's price relative to its all-time high and its historical volatility patterns.

By focusing on the Drawdown Severity Score™, we aim to provide a quantitative look at risk. We do not make assumptions about the causes of price movements. Instead, we report the exact numbers as they appear in the historical record to help investors understand where the current price sits in a historical context.

Severity Thresholds to Monitor

To understand the path forward for California Resources Corporation (CRC), we look at the specific levels that would alter the current data picture. A move back toward the all-time high of $70.13 would continue to lower the Drawdown Severity Score™. Conversely, if the drawdown deepens beyond the current -10.9%, the severity score would likely climb back into the yellow zone.

We will continue to track the number of days spent in this drawdown. If the duration exceeds the 57-day historical average without a recovery to new highs, it would mark a shift in the stock's typical recovery cycle. Investors often monitor the -8.4% level, as that represents the historical average max drawdown for this asset. Since the stock is currently at -10.9%, it is operating outside of its standard pullback range.