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Gasoil: A Break Lower Looks Likely

Published 10/28/2014, 02:31 AM
Updated 07/09/2023, 06:31 AM
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Gasoil Weekly Chart

Gas Oil sideways for almost 2 weeks & this pattern looks more like a pause in the bear trend to allow the oversold conditions to unwind, rather than a basing pattern. Immediate resistance at the 7 day high of 743/46 but shorts need stops above 749 for a test of strong resistance at 753/55 which should hold a move higher today. However a break above 759 signals further gains to 766/768 before strong resistance at 775.

Immediate support at 732/731 then the 7 day low at 727/725 could hold the downside again today. Eventually a break lower looks likely. Longs therefore need stops below 722 for a test of October lows of 719/717. This must hold or a break lower signals the start of the next leg lower in the 4 month bear trend. Be ready to go with a break to target important longer term Fibonacci support at 708/707.

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