GASOLINE closes higher for the 2nd day in a row
RBOB Gasoline (GASOLINE) Technical Analysis Report for Aug 19, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GASOLINE ended Monday at 1.5318 gaining $0.0089 (0.58%) on low volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GASOLINE as at Aug 19, 2019):
Monday's trading range has been $0.0269 (1.77%), that's below the last trading month's daily average range of $0.0493. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GASOLINE. Prices continued to consolidate within a tight trading range between 1.4999 and 1.5455 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on August 13th, GASOLINE lost -3.64% on the following trading day.
Prices are trading close to the key technical resistance level at 1.5524 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 1.4999 where further sell stops could get triggered. Trading close to June's low at 1.4684 we might see further downside momentum if potential sell stops at the level get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for RBOB. Out of 663 times, GASOLINE closed higher 53.70% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after three trading days, showing a win rate of 52.04% with an average market move of 0.13%.
With three out of the other four Energy Markets closing higher today, the ones that stand out on the positive side are CRUDE gaining 2.29% and HEATOIL closing 1.13% higher. None of the markets ended the day in the red. Read more