While doing my morning reading I came across an article from Time Moneyland discussing that gas prices are actually lower today than they were a year ago. I thought this would be a good time to check out the chart of spot gasoline and see where we stand.
Well Brad Tuttle was right, we are lower than a year ago as the horizontal line shows. The current setup in unleaded gasoline looks pretty similar to 2011. We had a rise to $3.40 with an oversold RSI and CCI in late April. Will the drop look like 2011 too? The 70-period CCI has done a fairly good job at showing us short- and intermediate-bottoms in gasoline when it breaks below -100. We aren’t there yet but with the drop in volatility we looked at yesterday, it’s not unlikely we continue to fill the price gap created in February which would take us down to $3.00.
Moneland article: Gas Prices are Cheap
Photo: Daddy Yankee
Disclaimer: Everything in this post is meant for educational and entertainment purposes only. Do not construe anything written in this post or blog as a recommendation.
Each week I check two places to get a feel for what’s going on in the futures market. First I head over to see what Peter Brandt has to say, Peter is one of the brightest traders and commentators when it comes to the futures market. Then I head to the COT data. I use to compile the data myself but I have turned to other sources to do it for me. Today I’m going to dive into a few charts from Finviz that shows the commercial hedgers as well as the large traders and small traders net positions.