Putting Out The Fire With Gasoline!

David Bowie – Putting out the fire (Gasoline).wmv – YouTube

                                As you can tell, I’m a big fan of David Bowie’s music, and when I create this gasoline chart this song always come to mind. 


Gasoline has been on a rampage, but with many overlapping wave positions that kill the generally accepted impulse wave formations. RBOB gas has charged to new record bull market highs, which still has a bit to go before another big correction could happen.  The gasoline pattern will be a bit different than crude oil as the added step of processing has a huge impact with any supply and demand situation.  

Once the bull market started in early 2016 a huge gap opened up which we can clearly see in the monthly charts. This mother of all gaps will get closed, but it may take until after this entire bullish cycle has completed. A small spike is starting to form, but that can also push a bit higher.

There are huge differences between daily and weekly charts. I use the standard 500 bars in a chart, but many times I do switch them to 1500 bars, which keeps the entire bullish phase in view.

At the $2 price level, we could run into stiff resistance, with the $3 price being a distant possibility.

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