Showing posts from July, 2013

Gasoline: $6.00 at the Pump?

Markets in general have, for quite awhile, been rather boring. That is about to change. Gasoline is a good example; it has traded within 16% of $3.00 since January of 2011; 2.5 years! That range appears to be at high risk of being taken out explosively to the upside. So much for boredom. First a little background material. Gasoline has a pretty regular seasonal pattern. Walter Zimmerman's work on this has the mid-summer low, occurring on avg. July 21, followed by a 32% rally into October. A 32% rally from the June 26 low of 2.69 targets 3.55, taking out the overhead resistance line seen below at around 3.44 Weekly click to enlarge So Gasoline has been trending sideways, considered corrective in most all technical methods, for an extended period of time. In Elliott Wave terms there is a good case for an "abc" count down from the highs labeled "Y" ,  probably completing this correction . Additionally gasoline is currently  subject to a bullish seas