GASOLINE closes within prior day's range
RBOB Gasoline (GASOLINE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GASOLINE ended the week 5.94% higher at 1.0481 after losing $0.0161 (-1.51%) today on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GASOLINE as at May 22, 2020):
Friday's trading range has been $0.0662 (6.24%), that's slightly below the last trading month's daily average range of $0.0704. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GASOLINE.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on April 13th, GASOLINE actually gained 5.61% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 1.0999 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for RBOB. Out of 66 times, GASOLINE closed higher 60.61% 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 seven trading days, showing a win rate of 51.52% with an average market move of 0.09%.
With three out of the other four Energy Markets closing lower today, the ones that stand out on the negative side are CRUDE losing -1.03% and HEATOIL closing -0.85% lower. On the flipside the best performer has been NATGAS closing 1.5% higher. Read more