Gasoline Blendstock Weekly Chart Price Surge Update

I’m sure you can read all sorts of fundamental reasons why gasoline prices are soaring. I get the same bullshit from the man in the street, that have never ever looked at a futures chart. In the end there is not a single person that can tell you what made gasoline prices go up and down in anyone of these patterns. When the oil market was in a glut in 2016, nobody will know or will remember specificly what turned the oil market northward.  I sure can’t that’s why I use numbers and letters to track the emotional trips that investors make. Never forget where this big bullish cycle originated from.

The big Cycle degree wave 3 peak happened in July 2008, as the expert cries for shortages were heard everywhere. Within 5 months gasoline prices had crashed which  the majority of experts never saw coming. The contrarians were calling for a crash and the markets did not disapoint us.

Today we are faced with the same situation as gasoline prices are going “vertical”.  Summer months seems to be a great time for oil related markets to crash, but the exact date and time is never written in stone. From the 2016 low gasoline prices have charged up with some of the wildest patterns I’ve ever seen. Once again we will hear all sorts of fundamental reasons why prices should keep heading north.

When prices are pointing up, I look down and build the bearish scenerio that will always come.  At $2.26 gas prices are stuck in limbo with no previous resistance from the 2014 crash.  What we do have is a great Head and Shoulder pattern, that from my perspective is a very bearish H&S pattern. Then between the $1.30 and $1.10 price range we have the biggest open gap I have ever seen in any commodity. This gap will get closed and it is only a matter of time before this happens. If we look 5 months or so down the road into the fall, then this is plenty of time for a crash to show itself again.  They call this Gasoline Blendstock but it is much lower than any prices you may find at the pumps.

It seems that turnings happen closer to mid year but this market has no shortage of surprises at least in the short term.

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