GASOLINE closes lower for the 5th day in a row
RBOB Gasoline (GASOLINE) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, GASOLINE finished Thursday at 1.5771 losing $0.0062 (-0.39%). Today's close at 1.5771 marks the lowest recorded closing price since October 9, 2019. Closing below Wednesday's low at 1.5817, RBOB confirmed its breakout through the previous session low after trading up to $0.0333 below it intraday.
Daily Candlestick Chart (GASOLINE as at Jan 23, 2020):
Thursday's trading range has been $0.0387 (2.44%), that's slightly below the last trading month's daily average range of $0.0468. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GASOLINE.
One bullish candlestick pattern matches today's price action, the Takuri Line.
After trading down to 1.5484 earlier during the day, the market bounced off the key technical support level at 1.5750 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 7th, GASOLINE actually lost -3.62% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 1.6889.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for RBOB. Out of 37 times, GASOLINE closed lower 59.46% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.46% with an average market move of -1.41%.
With two of the other Energy Markets closing higher and two closing lower today, the winners of the day are NATGAS surging 0.41% and HEATOIL gaining 0.14%. On the flipside the worst performers have been CRUDE closing -0.67% lower and GOIL losing -0.23%. Read more