Gasoline 2008-2017 Weekly Chart Elliott Wave Count Review

Gasoline futures have a very different wave pattern from the 2008, than crude oil has. At the 2016 low, gasoline did not implode to a new record low so its not a big single zigzag gasoline bear market. It sure can be a triangle, and an ugly one at that. At this time I will use Cycle degree wave 3 at the top in 2008, but I may have to adjust this in the future.

The start of the 2016 bull market turned into a choppy mess very quickly.  When an impulse is this hard to count out, then we must be open minded to a big bearish rally. The two trend lines do not do it justice as gasoline could spike much further, than what the trend lines suggest.  The general public really can’t tell the difference between a fake bull market or a real one. The only way wave analysts  know the difference is what the patterns looks and behaves like.

Recently gasoline  made a huge spike to the upside which didn’t show up on many charts. This move diverged for crude oil, which is understandable, because they go through different processes. When I saw that massive spike, I thought this would produce a longer and deeper correction.

Below present prices, I have a small gap at the $1.54 price level. I think this gap still has to get filled, before gasoline prices can move much higher again.

Further below, between $1.05 and $1.25 we have a monster gap that Godzilla could walk through, but this gap should remain open for the entire crude oil and gasoline bullish phases still in progress.  In the long run this monster gap will get closed when the next big bearish phase starts to end.