Commodity Chart Of The Day
For the last five days, RBOB prices have dropped, depreciating approximately 15 cents/gallon. With prices now under the 8, 18 and 50 day MAs, I think we finally have a real correction underway. There have been a few head fakes recently, but this could be the correction forecast in recent weeks. Support is seen about 5 cents below today's low, but this being the third attempt at that level, I suspect we see a trade under the 100 day MA in the coming weeks. That pivot point is identified by the light blue line, and prices have been above that level since early August.
My stance is the entire energy complex could trade lower in the coming weeks. On a 50% Fibonacci retracement, which would drag prices 20 cents from current prices, we would start to see some relief at the pump, since prices have been well over $4/gallon for months now. Relief in energy prices right around the election -- coincidence, or not?
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