I Like My Gas Cheap
- Posted by TheArmoTrader
- on December 15th, 2011
I have noticed lately that gas prices have been coming down. I like this, as I like my gas cheap. At the height of the (temporary) inflation we saw this year, I was paying around $4.15 ish for a gallon of gas. Currently, at my local gas station, I would pay $3.65. That’s 50 cents per gallon in my pocket that I otherwise would have to spend. If we stay at these levels for a year, that “would add roughly $70 Billion to the US economy”. That’s about ~0.5% of our economy. Nothing to write home about, but that certainly would help speed up the deleveraging and boost the economy.
So how does the chart look? Is there anything that says gas prices might rise anytime soon? I expected a drop in gas prices a few months ago, and we got it. Can we see more of a drop?
$RB_F – RBOB Unleaded Gasoline daily chart
The chart is bearish. There is no doubt about that. However we are at a HUGE inflection point. If 2.50 holds, and we brake above 2.70, we are going to see a rise in gas prices. However, if 2.50 drops and we HOLD below (as you can see, we keep wicking below), than I can see a drop to 2.40 (then 2.20), which would be bullish for the economy. The RSI has also been pretty bearish and been trending down as the chart trends down in the descending channel.
I like that, I want my gas cheap.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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