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Gasoline Technicals

Published 08/05/2016, 08:29 AM
Updated 07/09/2023, 06:31 AM
UGA
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Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

UGA
United States Gasoline


Gasoline's focused bear opportunity has produced an impressive 159% annualized gain for the bears since the third week of May (see COT Matrix 05/17/16). This opp recorded a whooping 300% annualized return after the first week of July.

Bulls following the old Wall Street saying bulls and bears make money while pigs get slaughtered booked partial profits and reduced risk after these impressive returns.

A weekly close below 20.24 maintains the down impulse, while a close above 24.09 (red circle) pauses it and favors at least a retest of the May swing high.

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