The Market is in a Bear Market Rally on the daily, with price above the 50 , which is below the 200 , which is below the 800 . Price is trading up against a long-term down currently above the 9/13/30/50 emas and is completing the third of three pushes up. A likely upside target for this rally is 1.8366 which is the weekly 800 , and above the a-wave high of 1.7785. We’re still in an uptrend as long as each day closes above the 13 which is currently at 1.7066.
The Market is giving early warning of a possible Bull Market on the 4 hour, with price above the 50 , which is above the 800 , but the 200 is still below the 800 . Price would have to close below 1.794 for this Bear Market Rally to be considered over. The Oil Market is rallying as a result of Middle Eastern turmoil, as well as all the FED Repo and Not-QE money creating a Risk On environment.
I would expect this market to rally into over-head resistance here in January, and then turn down for a little while as the excess end of year REPO money unwinds, and turmoil in the ME subsides for a little while. This would allow the x-wave to top, and the market to sell off into the y-wave bottom.
This is my RBOB Gasoline look ahead for my own trading purposes. trading involves risk. Feel free to comment, but trade off of this post at your own peril.