Gasoline Futures May Fall to $1.76 Within a Month: Technical Analysis

[Purveyor]

By Barbara Powell

Aug. 14 (Bloomberg) -- Gasoline futures may fall from $2.02 a gallon to $1.76 by mid-September and below $1.35 by the end of the year, according to technical analysis by Infinitytrading.com.

The front-month gasoline contract is poised for a slide to $1.9575 within seven to 10 days and then $1.7619 within 30 days, said Fain Shaffer, president of Infinitytrading.com, a commodities brokerage in Medford, Oregon. Prices may then reach the April low of $1.3411, he said.

“We’re coming out of the peak demand time, we’ve seen the highs in the market and could be setting up for a pretty good fall,” Shaffer said in an interview. “I think we may have seen a peak in the market at $2.08. The next objective is $1.95 and from there we could free-fall.”

The $1.9575 target represents the middle Bollinger Band, which has held since July 22. Below that is $1.7619, the lower Bollinger Band, a support level that hasn’t been breached since July 9.

The September contract reached a so-called double top this month, touching $2.0855 on Aug. 3 and $2.0831 yesterday, and failing both times to break through and make a new high.

“It’s almost a sign of exhaustion,” Shaffer said.

BLOOMBERG: http://www.bloomberg.com/apps/news?pid=20601087&sid=antbnTSyZ8no

[Javaman]

1. and then again, they may not. futures are like crystal balls. nt

[Andy823]

2. Oil is down to around $68 right now

Right before the 4th of July oil was up around $75 a barrel, and gas in my area climbed to $3.03 a gallon until after the 4th when it came down "slowly" and then settled at $2.93. Oil has gone up to around $71 for the high since then, maybe a little more, but not back up the the $75 mark it was in July. Gas prices here started going up over a week ago, from $2.93 up to $2.97, and now this week went up to $3.05! I don't see it coming down in price till after Labor day, then I would agree with what you posted, and I think we will see a big drop in prices. The speculators have been doing all they can to keep the price of oil up above $70 a barrel, and had plans to get it up even higher. Prices are being manipulated by all those investment groups that bought up a lot of cheap oil, and had plans of getting the price back up over $80 or more per barrel this year. It's all about "GREED" and as usual, the rich get richer and the poor, well they just don't seem to stand a chance in this screwed up system we live in today!