Gasoline Crash Update

This is the April gasoline contract with a daily chart setting. Since about June 2017 this contract charged up, in what looks like a pretty good looking impulse wave structure. Gasoline topped out on January, 26th and then proceeded to nose dive. So far gasoline has completely retraced below what could be the previous 4th wave of one lesser degree, but it’s far from being finished.

I can switch this daily chart to a weekly chart and you will never see this pattern to help confirm it. When I turn it to a weekly chart setting,  gasoline fits better as a single inverted zigzag, in Minor degree.

An inverted zigzag can mean that a 100% retracement of the entire bullish phase can happen. The little double top in gasoline did not happen like it did in crude oil,  which is a good thing. At this time gasoline is making a 5 wave declining run, but we should get a 4th wave rally for the next few weeks or so.

Not until I see a clear cut correction completing,  can I turn bullish on gasoline,  so be prepared for a long ride south bound. Well below this June bottom is the mother of all gaps which has never been closed off.  This gap is one of the largest in any futures contract I have ever seen. Open gaps work like magnets, but can also repel prices once the “Big Gap” is closed.

Even after this Minute degree 5 wave decline plays out, we could be looking at another 5 waves down in Minor degree. I may need to adjust this bearish phase degree level, down by one degree, but I will do that once this set of 5 waves is completed.

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