Gasoline Futures Update

Since late June 2017 gasoline futures have soared.  At first glance we can see 5 waves up, but that doesn’t tell us much if we don’t know what degree this one leg is in.   There is a very good chance a correction is coming, but how long and how deep this impending correction can go is directly related to the degree we may be finishing.   Since the late 2016 start  both crude oil and gasoline futures had an extremely choppy start, which fits best into a diagonal 5 waves.

When I look at this with a weekly chart, the pattern changes and it looks nothing like what we have. I can turn this into a “C” wave bullish move which would allow a better  looking impulse wave, because of the alternation.  Gasoline is more connected to the fundamentals, so if a slowdown were to show itself  gasoline and crude oil can start to take a hit.

Oil sure crashed along with stocks in 2008 so it’s not like it has never happened before.  Gasoline is still heading up as I post, so it may take until the end of the month before it reacts.

The entire decline can be retraced, by a net move of 60% or more (. 618) The forward momentum has also slowed with all the waves getting smaller.

What I will be looking for is to identify the correction when I can see another zigzag or flat type of pattern correction.

Hits: 0

Share this...
Email this to someone
email
Print this page
Print