RBOB Gasoline Blendstock 2008-2017 Review


Since crude oil is being stubborn in trying to find a bottom, so looking at the Gasoline Blendstock futures may give a better bigger scale picture.  Well, that hope was dashed, when I saw that gasoline did not exceed the 2008 crash low. Besides not producing a new record low in 2016, we also have what looks like a huge gap still open. This gap will get closed, but I doubt it will get closed this time around.

This gap also tells us that after some future bull market top, gasoline can once again crash and go well below the gap, closing it in the process.  For now I will keep a potential triangle going, with the “A” wave, already completed. I can’t say that much for any potential Minor degree “B” wave being completed. 

With a potential triangle still in progress, we could get strong  resistance, at the top declining trend line.   This may still take all of 2017 before we can see that this market is confirming anything. There are many refining production problems that can happen, with maintenance shutdowns, or terrorists blowing up pipelines. 

Short term we can still see downside, but longer term I look at it from a big bullish phase still to come.

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