Commodities

Gasoline Analysis Report 4/13/19 – Are We At The End Of The Bend In The Trend???

The current price of an average gallon of regular gas nationwide is up 35 cents in the past six weeks.  According to gas price research company GasBuddy, the average price of a gallon of regular gas has reached $2.58, which is the highest price since November.

Gasoline is a derivative of oil, so as oil prices rise, which is up over 30% YTD, so does gasoline, which is up almost 50% YTD.  However, gasoline prices are also seasonal.  In late February routine refinery maintenance season begins. 

Then in mid-April refiners changeover from producing “winter blends” of gasolines “summer blends.”  Thus, there is a period leading up to the Summer months were there is an imbalance between supply-demand.

So is there more room for Gasoline prices to move higher, lets go to the charts.

Monthly Chart (Curve Time Frame) – monthly supply is 2.2010 and monthly demand is 1.3250.

Weekly Chart (Trend Time Frame) – the trend is up.

Daily Chart (Entry Time Frame) – the chart suggests to short price now at the daily supply at 2.0807.

If you missed the trade, here’s what I’m looking for next…if price is going to move lower, it must take out the demand circled in pink, then pull back, before heading lower.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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