RBOB Gasoline … Notable Price Action

RBOB Gasoline futures (symbol:  RB) have been trading in the $2.44-3.48/gal range since Apr11. The recent gap up in price is notable for several reasons:

  • the gap up traded above the minor downtrend line which originates at the Sep12 high
  • volatility shows a recent uptick
  • stochastics have turned upward, and
  • we’re entering the gasoline season

RBOB Gasoline, 06Mar14

The price gap higher is potentially a strong indicator of what’s to come, especially following the extensive period of price consolidation. Critical support lies at the $2.73, 2.58 and 2.44 levels.

In the short term, RBOB and Crude Oil seem a little over done. We’ll keep a close watch on the nature and extent of the retrenchment.

Murphy & Co’s RBOB Gasoline model is currently long.  To learn more about Murphy & Co’s position models, visit http://murphycofutures.com/position-models/.

Posted in Crude Oil, Energy, RBOB Gasoline, Uncategorized Tagged with: , , , , ,

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