Gasoline Futures (RBOB Gasoline Futures) likely counter trend bounce here off 200weekSMA support at $1.66 to reclaim long-term moving average support of 50monthSMA at $1.70, then rally to test 100weekSMA resistance at $1.80.
- Gasoline Futures (RBOB Gasoline Futures) now testing long-term support of 200weekSMA at $1.66.
- $1.66 also strong ...
Brent vs. WTI spread continues to remain strong and pulling up the value of Gulf Coast crude, which in turn is driving erosion in Gulf Coast crack margins (represent by blue line on the chart). Valero stock price (candlesticks on the chart) is reacting to deteriorating refined products margins. Bearish until crack spreads reverse course.
We think it is worth to have an eye on this crack spread between gasoline and heating oil. The reason is simple: this spread is close to its lower end of the range and therefore close to its extreme. We will buy this spread when the spread reached -0.40. In this case, we buy RB and sell HO.
Gasoline is trading sideways within a 1.9950 - 2.1890 Rectangle on 1D. The neutral 1W RSI = 47.963, ADX = 14.795 but most importantly its High Volatility (ATR = 0.1150) should keep the sideways trade intact. We are long, TP = 2.1295.
Short Position (EP) : 2.0840
Stop Loss (SL) : 2.1017
Take Profit (TP) : 1.9881, 1.9002
RB formed Double Repo Failure Sell at 1d time frame. Trade setup with Sell Limit at 0.382 Level (2.0840) and place stop after 0.618 level (2.1017). Once the position was hit, place take profit before an agreement (1.9881) and 1.9002
Gas Futures Plummeted after tremendous break due to Hurricane harvey. After the plumet price did drop right ontop of 100EMA, a possible sign of strong support here to see it test upper channel once more. If all goes well, selling upper rejection is the plan.
CTF - RB1!
Chart timeframe - 4hr
Area of interest - 1.8275 ...